JP Group shares dip; Gujarat cement unit sale, flood-hit Vishnuprayag project weigh

Jaiprakash Associates, Jaiprakash Power Ventures and Jaypee Infratech are down 6-15%, trading at their 52-week lows on BSE.

Shares of Jaypee Group all three listed companies such as Jaiprakash Associates, Jaiprakash Power Ventures and Jaypee Infratech are trading at their 52-week lows on reports that Jaypee Cement has shelved the plan to sell its Gujarat unit as it did not get the “right” price.

Jaiprakash Power Ventures has tanked 15% to Rs 17.30, while Jaiprakash Associates dipped 10.4% to Rs 51.65 and Jaypee Infratech by 6% to Rs 23.20 on the Bombay Stock Exchange.

According to Ashutosh Kumar, Joint President (Marketing), Jaypee Cement, the company did not get the right valuation and hence the plans for selling the Gujarat unit was shelved, the Business Line report suggests.

Jaypee Cement, the country’s third largest producer and part of Jaiprakash Associates was looking to sell its 4.8 mt cement plant in Gujarat.

Aditya Birla Group-promoted UltraTech Cement was reportedly in talks to buy the said plant and the valuation of the deal was estimated at around Rs 4,000 crore.

Meanwhile, Jaiprakash Power Ventures in a regulatory filing said that the company's  400 MW Vishnuprayag Hydro-power plant has been shutdown the Barrage operations and power generation w.e.f. June 16, 2013 due to heavy rain in Uttarakhand.

While Company is taking effective steps to restore generation, assessment of damages due to the said flood conditions shall be made on restoration of commutation and connectivity to Barrage site. Unprecedented floods in river Alaknanda has resulted in Force Majeure event for 400 MW Vishnuprayag Project, commercial aspects of which shall be addressed in accordance with Power Purchase Agreement between Uttar Pradesh Power Corporation Limited (UPPCL) and the Company, the company said.

As prudent practice, 400 MW Vishnuprayag project is also covered under Industrial All Risk Insurance Policy.