JP Associates, UltraTech up 5-38% on Rs 16,189 cr cement deal

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26 Aug, 2025 12:21

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UltraTech Cement hit record high of Rs 3,600, up 5.5 percent intraday and Jaiprakash Associates gained 37.7 percent on Tuesday after the board of directors of both companies agreed on revised cement deal worth Rs 16,189 crore.

"Board of directors of UltraTech on Monday approved an amendment to the definitive agreement and also the draft scheme between the company, Jaiprakash Associates, Jaypee Cement Corporation and their respective shareholders and creditors for acquisition of cement plants for a total capacity of 21.2 MTPA at an enterprise value of Rs 16,189 crore," says Aditya Birla Group company in its filing.

Jaiprakash Associates (JAL), Jaypee Cement Corporation (wholly owned subsidiary of JAL) and UltraTech Cement had signed definitive agreements for the cement deal on March 31.

UltraTech yesterday agreed to increase enterprise value by Rs 289 crore for the deal. Earlier these companies had fixed an enterprise value at Rs 15,900 crore and agreed to exclude the 1.2 mtpa capacity in Karnataka.

The deal includes operating cement plants with an aggregate capacity of 17.2 million tonne per annum spread over Uttar Pradesh, Madhya Pradesh, Himachal Pradesh, Uttarakhand and Andhra Pradesh besides grinding unit of 4 MTPA capacity, which is currently under implementation in UP.

JP Associates says an additional amount of Rs 470 crore will be paid by UltraTech Cement for completion of grinding unit under implementation.

The transaction is subject to the approval of shareholders and creditors, high courts and all other regulatory approvals as may be required and will be consummated within the next 12 months.

"Post this deal, Jaypee Group will retain an aggregate cement manufacturing capacity of 10.6 MTPA with plants spread in Madhya Pradesh, UP, Andhra Pradesh and Karnataka," says Manoj Gaur, executive chairman, Jaypee Group.

Upon consummation, the UltraTech's cement capacity will stand augmented to 91.1 MTPA including its overseas operations.

At 10:18 hours IST, the scrip of Jaiprakash Associates was quoting at Rs 12.31, up 35.57 percent and UltraTech Cement was at Rs 3,422.35, up 0.34 percent on the Bombay Stock Exchange.Posted by Sunil Shankar Matkar