Jaypee Group To Divest Cement Business To Pare Debt
In a filing on Oct. 7, Jaiprakash Associates had reported a total debt of Rs 28,648 crore, as of the quarter ending Sept. 30.
Jaypee Group has approved the divestment of the cement business of its listed firms Jaiprakash Associates Ltd. and Jaiprakash Power Ventures Ltd. to reduce its debt.
The board of Jaiprakash Associates has decided to divest its "significant cement business" to "give thrust to the ongoing efforts, of the company, to reduce its debt", it said in an exchange filing without giving details.
Jaiprakash Power, without elaborating, said it would divest its Nigrie cement grinding unit and other non-core assets.
The Noida-based Jaypee Group is a diversified conglomerate primarily present in northern and central India, with forays in cement, power, real estate, expressways, fertilisers, and hospitality among others.
The group's cement facilities in Satna, Madhya Pradesh, and Uttar Pradesh, produce a blend of portland pozzolana cement under brand names Jaypee Cement, Buland, Master Builder, and Buniyad, as per its website. The group has an aggregate capacity of approximately six million tonnes per annum.
Jaiprakash Associates had reported total debt of Rs 28,648 crore as of the quarter ended Sept. 30, the company said in its exchange filing on Oct. 7.
Shares of Jaiprakash Associates jumped as much as 9.8% after the announcement. The stock has gained 35% in the last three sessions.
Jaiprakash Power's stock, too, jumped as much as 3.6% on Monday.
