Jaiprakash Associates shares soar 9% on UltraTech deal

Shares of Jaiprakash Associates (JAL) on Wednesday zoomed nine per cent after Aditya Birla Group firm UltraTech announced the acquisition of its two plants in Madhya Pradesh for Rs 5,400 crore.

Cheering the deal, shares of Jaiprakash Associates soared 8.96 per cent to settle at Rs 25.55 on the BSE. During the day, it gained 9.8 per cent to Rs 25.75.

Shares of UltraTech Cement also rose by 3.4 per cent to end the day at Rs 2,625.70.

UltraTech, India's largest cement maker, on Tuesday said its Board had approved the acquisition of JAL's Bela unit, which has 2.1 million tonnes per annum (mtpa) clinker and 2.6 mtpa cement grinding capacity.

The other unit, located at Sidhi, has 3.1 mtpa clinker and 2.3 mtpa cement grinding capacity. Both units have a total of 180 Mw power generation capacity.

"The Board has approved the Memorandum of Understanding setting out the broad terms and conditions of the proposed acquisition. The enterprise value of this acquisition has been agreed at Rs 5,400 crore," UltraTech Cement had said.