Jaypee group shares go up 38%
Jaypee group shares increased up to to 34% after the approval by Jaiprakash Associates for the sale of its cement business to UltraTech Cement. The total value of the deal was Rs.16189 crore in which UltraTech would be paying an additional amount of Rs.470 crore for the 4 MTPA grinding unit. Jaypee group will keep an aggregate cement amount of 10.60 MTPA with plants.
Infrastructural industrial conglomerate: Jaiprakash Associates Ltd
Jaiprakash Associates Ltd, a part of the Jaypee Group was established in the year 1995 under the name Bela Cement Ltd and was promoted by Jaiprakash Gaur, known as the leader in the construction of multi-purpose river valley and hydropower projects. The company is engaged in engineering and construction of hydropower projects providing integrated solution with a record of project implementation in different capacities.
Cement business of Jaypee Group
Jaypee group is the third largest cement manufacturer in the country and its facilities are situated in the Madhya Pradesh, known for having highest cement production growth rates in India. A special blend of Portland Pozzolana Cement is made under the brand name 'Jaypee Cement.' The cement section presently operates modern, computer controlled cement plants with an aggregate capacity of 28.80 MTPA in FY' 12.
Company's expansion in cement production capacity
The group expanded their Cement Production Capacity to 30.75 MTPA along with the additional capacity of 4.3 MTPA through Joint Ventures with Steel Authority of India Ltd (SAIL) strengthening Jaypee Group's position of being the 3rd largest Cement producing group in India.
Jaypee group shares hit multi-year lows on BSE
Shares of all the three companies of Jaypee Group - Jaiprakash Associates, Jaypee Infratech and Jaiprakash Power Ventures - traded at all-time lows on the Bombay Stock Exchange. The stocks underperformed the market and fell between 40%-52% as compared to 2.7% decline in the SP BSE Sensex. The market capitalisation of these companies decreased to Rs. 3,646 crore from Rs. 6,727 crore.
Jaypee Group defaults on Rs. 4,460 cr debt, payments
Taking into consideration financial stress, the Jaypee companies failed to pay loans and other payments worth Rs. 4,460 crore. The company failed to repay principal amount of Rs. 2,905.6 crore to banks and other Rs. 1,558.93 crore in interest payments. Earlier, the group sold off its hydro power projects to JSW Energy for Rs. 9,300 crore and Bina power project to JSW for Rs. 3,500 crore.