Jaiprakash Associates spurts as board approves definitive agreement with UltraTech

Jaiprakash Associates jumped 14.92% to Rs 8.78 at 11:21 IST on BSE after the board of directors of the company approved the definitive agreement with UltraTech Cement for sale of part of its cement business.

Shares of UltraTech Cement slipped 0.24% to Rs 3,219.15 on volume of 8,730 shares on BSE.

Meanwhile, the S&P BSE Sensex was down 56.74 points or 0.22% at 25,285.12

On BSE, so far 70.61 lakh shares of Jaiprakash Associates were traded in the counter as against average daily volume of 35.87 lakh shares in the past one quarter. The stock hit a high of Rs 8.99 and a low of Rs 7.80 so far during the day. The stock had hit a record low of Rs 6.45 on 12 February 2016. The stock had hit a 52-week high of Rs 26.70 on 10 April 2015. The stock had underperformed the market over the past one month till 31 March 2016, advancing 7.91% compared with Sensex's 10.17% rise. The scrip had also underperformed the market in past one quarter, declining 35.8% as against Sensex's 2.97% fall.

The small-cap company has equity capital of Rs 486.49 crore. Face value per share is Rs 2.

The board of directors of Jaiprakash Associates has yesterday, 31 March 2016 approved the definitive agreement with UltraTech Cement for sale of part of its cement business comprising identified operating cement plants with an aggregate capacity of 17.20 million tonne per annum (MTPA) spread over Uttar Pradesh, Madhya Pradesh, Himachal Pradesh, Uttarakhand and Andhra Pradesh besides a grinding unit of 4 MTPA capacity which is currently under implementation in Uttar Pradesh. Both the parties have mutually agreed to exclude the Shahabad plant in Karnataka from the transaction. The total enterprise value is Rs 15900 crore, Jaiprakash Associates said. An additional amount of Rs 470 crore shall be paid by UltraTech Cement for completion of the grinding unit under implementation, the company said. The consummation of transaction is expected to take 9 to 12 months, it added. Post this deal, Jaypee group shall retain a total of 10.6 MTPA capacity cement plants spread in Uttar Pradesh, Madhya Pradesh, Andhra Pradesh and Karnataka, it further informed. The announcement was made after market hours yesterday, 31 March 2016.

Jaiprakash Associates reported net loss of Rs 813.49 crore in Q3 December 2015, higher than net loss of Rs 618.64 crore in Q3 December 2014. Jaiprakash Associates' net sales declined 23.1% to Rs 2000.03 crore in Q3 December 2015 over Q3 December 2014.

Jaiprakash Associates is the flagship company of the Jaypee group and is engaged in engineering and construction, cement, real estate and hospitality businesses.

Powered by Capital Market - Live News