Jaiprakash to sell cement, power units to Dalmia Group for Rs 5,666 cr

Deal will give buyer entry into high-growth markets of UP and MP, may turn the firm into a net debt company from almost debt free now

Jaiprakash Associates will sell its cement, clinker, and power plants to Dalmia Cement (Bharat), a subsidiary of Dalmia Bharat, at an enterprise valuation of Rs 5,666 crore, the company told the stock exchanges on Monday. With this Jaiprakash Associates will exit the cement business.

Dalmia Cement will get additional cement capacity of 9.4 million tonnes (mt), along with clinker capacity of 6.7 mt, and thermal power capacity of 280 Mw. As a result, its domestic cement capacity will increase from 37 mtpa at present to 47 mtpa, and to 60 mtpa by FY24, taking the group ahead of industry’s number three