Jaypee demerger to take 6-9 months post MMDR amendment: Sources

Jaypee Group is set to sell its entire cement business valued at USD 3 billion, to reduce debt, reports Kritika Saxena of CNBC-TV18, quoting sources.

Speculated to be the largest cement deal in the country, this demerger will cut Jaypee’s debt by approximately Rs 20000 crore. The enire 22 million tonne capacity business is likely to be separated into a special purpose entity (SPE).

Sources said formal bids are likely to happen by February end, 2016 and the demerger process might take 6-9 months to complete after amendments to the Minerals Development and Regulation (MMDR) Act are made.

When contact, Jaypee Group refused to comment on market speculations.Watch video for more.