Bloomberg are reporting that Jaiprakash Associates Ltd. rose by the most on record after the builder of India’s only Formula One racetrack announced a higher valuation for the cement business it’s selling to Ultratech Cement Ltd.
Shares of Jaiprakash grew as much as 37%, before trading at 11.75 rupees a piece in Mumbai, up from 9.10 rupees at the close of 4 July. Ultratech dropped 0.9%, more than double the decline in the benchmark S&P BSE Sensex.
A higher sale price will help Jaiprakash reduce debt that more than doubled to 753 billion rupees (US$11.2 billion) in the five years through March 2015, before falling in the last fiscal. Lenders to the company had invoked a so-called Strategic Debt Restructuring plan, allowing lenders to convert debt into equity.
Jaiprakash defaulted on debt repayments to banks and financial institutions as well as on other dues last financial year, with delays of as much as six months, though the payments were subsequently made.
Edited from source by Joseph Green. Source: Bloomberg
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