Rumours abound over JP Associates/Ultratech sale

Reports in local press suggest that JP Associates is preparing to sell its 4.8 million t Gujarat-based plant to UltraTech within the next few days.

We recently reported that the company needed to divest some of its assets in order to reduce its massive Rs.64 000 crore debt. At that time that it was thought that the company would sell its Gujarat cement plant, power assets and property to raise Rs.15 000 crore.

More recent reports suggest that the company’s lenders could be putting on the pressure and that is why the deal with Ultratech might be finalised after a year of talks. Rumours also suggest that JP Power has found buyers for its hydro power projects in Baspa and Karcham Wangtoo, and for its 500 MW Bina Power Project.

The rumours have been good for share prices, which rose 10% this week. JP Associates and Ultratech have not commented on the reports.

Written by Katherine Guenioui