In an attempt to resolve its Rs 40 000-crore debt, Jaiprakash Associates has signed an agreement with Shree Cement to sell its stake in the 2.1 million t Bhilai Jaypee Cement (BJCL) for the value of Rs 2100 - 2200 crore.
Jaiprakash Associates is finding it difficult to service its debt due to various reasons, including a slowdown in the economy and some of its projects falling on the revenue front. In 2014, JAL had signed an MoU to sell the plant to Shree Cement but the deal did not materialise.
Jaiprakash Associates Ltd is currently trading at Rs. 11.36, down by Rs. 0.73 or 6.04% from its previous closing of Rs. 12.09 on the BSE.
Jaypee Group is the country’s third largest cement maker. Swiss major Holcim owns majority stake in both ACC and Ambuja Cement with a combined capacity of around 52 mtpa in India.
Read the article online at: https://www.worldcement.com/indian-subcontinent/07012016/jaiprakash-associates-sign-agreement-shree-cement-276/