JP Associates plans to sell cement units, shares up 2%
Jaiprakash Associates gained nearly 2 percent on Tuesday on media reports that the company is planning to sell its Gujarat-based cement units for Rs 4,000 crore in a few weeks.
April 16, 2013 / 15:09 IST
Jaiprakash Associates gained nearly 2 percent on Tuesday on media reports that the company is planning to sell its Gujarat-based cement units for Rs 4,000 crore in a few weeks. The move is aimed at reducing its debt pile, Business Standard said quoting sources.
According to the report, the deal is likely to be carried out at USD 150 a tonne. The capacity of these Gujarat- based units is 4.5 million tonnes per annum (mtpa).Earlier, the group was in talks with the Birlas to sell the cement units.At 12:09 hours IST, shares went up 1.73 percent to Rs 73.70 on Bombay Stock Exchange.In the previous trading session, the share closed up 2.62 percent at Rs 72.45. Market capitalisation of the company currently stands at Rs 16,354.65 crore. Research firm Bank of America Merrill Lynch has a buy rating on the stock with a target price of Rs 106. "The Gujarat cement plant divestment deal is on track, management indicates they will not under-sell on valuation," it explained. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
