Jaiprakash Associates surges nearly 18% on Ultra Tech deal

Mumbai: Shares of Jaiprakash Associates zoomed nearly 18 per cent today after debt-ridden Jaypee Group announced part sale of its cement business to Kumarmangalam Birla-led Ultra Tech for Rs 15,900 crore.  The stock surged 17.67 per cent to Rs 8.99 on BSE. On NSE, it soared 16.88 per cent to Rs 9. Ultra Tech Cement’s stock rose 1.17 per cent to Rs 3,264.90 at BSE. In one of the biggest deals in the domestic cement industry, debt-ridden Jaypee Group yesterday announced part sale of its cement business to Kumarmangalam Birla-led Ultra Tech for Rs 15,900 crore. The transaction will see Ultra Tech become possibly the biggest cement player in the country after gaining an overall capacity of 21.2 million tonne per annum from Jaypee’s cement plants in five states and a grinding unit in Uttar Pradesh. The value of the transaction, however, has been reduced from Rs 16,500 crore announced last month as Jaiprakash Associates Ltd’s (JAL) Karnataka plant with a capacity of 1.2 million tonnes per annum (MTPA) has been excluded. Announcing the deal, JAL in a filing to BSE said its board approved the definitive agreement with Ultra Tech Cement (UTCL) for sale of part of its cement business. PTI