Jaiprakash Power jumps after board's nod for sale of cement grinding unit

Jaiprakash Power Ventures surged 3.95% to Rs 4.74 at 9:57 IST on BSE after the company said its board approved the sale of Nigrie cement grinding unit in Madhya Pradesh to Orient Cement for an enterprise value of Rs 500 crore on slump sale basis.

The announcement was made after market hours yesterday, 6 October 2016.

Shares of Orient Cement were up 1.4% at Rs 224.95.

Meanwhile, the S&P BSE Sensex was down 45.99 points or 0.16% at 28,060.22.

On BSE, so far 4.35 lakh shares of Jaiprakash Power Ventures exchanged hands compared with average daily volume of 5.54 lakh shares in the past one quarter. The stock hit a high of Rs 4.90 and a low of Rs 4.70 so far during the day. The stock had hit a 52-week high of Rs 7.89 on 2 November 2015. The stock had hit a record low of Rs 3.65 on 2 June 2016. The stock had underperformed the market over the past one month till 6 October 2016, sliding 6.94% compared with 3.01% fall in the Sensex. The scrip had also underperformed the market in past one quarter, declining 19.15% as against Sensex's 3.46% rise.

The small-cap company has equity capital of Rs 2938 crore. Face value per share is Rs 10.

The 2 million tonne per annum (MTPA) unit clocked turnover of Rs 90.70 crore in financial year ended 31 March 2016 and contributed 2.33% to turnover of Jaiprakash Power Ventures. The definitive agreement is yet to be executed. The expected date of completion of sale is around 6 months.

Jaiprakash Power Ventures reported net loss of Rs 196.16 crore in Q1 June 2016 compared with net profit of Rs 66.96 crore in Q1 June 2015. Net sales declined 37.8% to Rs 750.41 crore in Q1 June 2016 over Q1 June 2015.

Jaiprakash Power Ventures is a power company and a part of Infrastructure conglomerate - Jaypee Group. The company plans, develops, implements and operates power projects in India.

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