Jaiprakash Associates spurts on likely deal with UltraTech

Jaiprakash Associates jumped 5.84% to Rs 36.25 at 14:56 IST on BSE on media reports that the company's deal with UltraTech Cement is expected to be announced by tomorrow, 5 September 2013.

Meanwhile, the BSE Sensex was up 302.60 points, or 1.66%, to 18,537.26.

On BSE, 53.81 lakh shares were traded in the counter compared with average volume of 37.85 lakh shares in the past one quarter.

The stock hit a high of Rs 36.60 and a low of Rs 34.05 so far during the day. The stock hit a 52-week low of Rs 28.40 on 19 August 2013. The stock hit a 52-week high of Rs 106.75 on 12 December 2012.

The stock had outperformed the market over the past one month till 3 September 2013, rising 15.32% compared with the Sensex's 4.85% decline. The scrip had, however, underperformed the market in past one quarter, sliding 48.53% as against Sensex's 7.02% fall.

The mid-cap company has an equity capital of Rs 443.81 crore. Face value per share is Rs 2.

According to recent media reports, UltraTech Cement is close to buying Jaiprakash Associates' Gujarat cement plant for about Rs 3700 crore. Both the companies have been in discussions for the 4.8 million tonne per annum plant for more than a year, reports added. The likely deal will help Jaiprakash Associates to reduce debt and help UltraTech Cement to ramp up capacity. Shares of UltraTech Cement rose 2.51% to Rs 1,477.75.

Jaiprakash Associates' net profit surged 140.9% to Rs 334.51 crore on 10.8% rise in net sales to Rs 3283.26 crore in Q1 June 2013 over Q1 June 2012.

The surge in net profit was due to an exceptional non-recurring income on sale of stake in its subsidiary Jaypee Infratech to meet the minimum public shareholding norms (MPS) of Jaypee Infratech. The company made a profit of Rs 395.28 crore on sale of 16 crore equity shares of Jaypee Infratech.

Jaiprakash Associates is a diversified company with business interest in construction, power, cement, real estate and hospitality.

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