Jaiprakash Associates gains after receipt of sale consideration

Jaiprakash Associates rose 2.43% to Rs 29.55 at 9:53 IST on BSE after the firm said it has received a consideration of Rs 667.56 crore post sale of its 74% stake in Bokaro Jaypee Cement, a JV between Jaiprakash Associates and Steel Authority of India

The announcement was made on Saturday, 29 November 2014.

Shares of Steel Authority of India were down 0.78% at Rs 88.60.

Meanwhile, the S&P BSE Sensex was almost unchanged at 28,692.58.

On BSE, so far 5.45 lakh Jaiprakash Associates' shares exchanged hands against average daily volume of 35.28 lakh shares in the past two weeks.

The stock hit a high of Rs 29.60 and a low of Rs 28.15 so far during the day.

Jaiprakash Associates (JAL) said it has received of consideration of Rs 667.56 crore upon transfer of 9.89 crore equity shares of Bokaro Jaypee Cement (BoJCL) (a joint venture between JAL and Steel Authority of India) to Shri. Rangam Securities & Holdings (SRSHL), an associate/affiliate of Dalmia Cement (Bharat).

It may be recalled that JAL had on 24 March 2014, intimated the signing of share purchase agreement (SPA) for sale of its 74% stake (9.89 crore equity shares owned by JAL) in the paid-up equity share capital of BoJCL to Dalmia Cement (Bharat) or any of its associates/affiliates.

Meanwhile, Steel Authority of India (SAIL) on Saturday, 29 November 2014 said it has received a sum of Rs 234.56 crore as consideration for sale of its 26% stake in BOJCL to SRSHL.

SRSHL is an indirect wholly-owned subsidiary of Dalmia Cement (Bharat), a subsidiary of Dalmia Bharat.

Jaiprakash Associates reported a net loss of Rs 106.48 crore in Q2 September 2014 compared with net profit of Rs 67.67 crore in Q2 September 2013. Net sales declined 15.4% to Rs 2664.12 crore in Q2 September 2014 over Q2 September 2013.

Jaiprakash Associates is a diversified infrastructure conglomerate with business interests in engineering & construction, cement, power, real estate, expressways, fertilizer, hospitality, healthcare, sports, information technology and education (not-for-profit).

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