Shares of Jaiprakash Associates Ltd on Tuesday tanked around 8 per cent after it entered into an agreement with Dalmia Bharat’s subsidiary to sell its cement assets. New Delhi-based Dalmia Bharat’s wholly-owned subsidiary — Dalmia Cement — has announced that it would acquire JP Associates’ cement assets for Rs 5,666 crore. The cement assets include clinker, cement and power plants.
The stock fell as much as 7.92 per cent to hit a day low of Rs 10.81 over its previous close of Rs 11.74. A total of 46.38 lakh shares changed hands today, amounting to a turnover of Rs 5.38 core. The market capitalisation (m-cap) of the company stood at Rs 2,766.33 crore.
At today’s low level of Rs 10.81, the stock was down 21.18 per cent from its 52-week high of Rs 13.10, hit on January 1, 2022. That said, the scrip is quoting 54.21 per cent above its one-year low of Rs 7.01, hit in June this year.
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The scrip traded on a highly volatile note today in early deals. It jumped to a day high of Rs 12.42 in the initial trade before .
The company said in an exchange filing, “Dalmia Cement (Bharat) Ltd (DCBL), wholly owned subsidiary of Dalmia Bharat Ltd has today entered into a binding Framework Agreement for the acquisition of Clinker, Cement and Power Plants from Jaiprakash Associates Limited and its associate having total cement capacity of 9.4 MnT (along with clinker capacity of 6.7 MnT and thermal power plants of 280 MW) at an enterprise value of Rs 5,666 crore.”
The assets, it said, are situated in the states of Madhya Pradesh, Uttar Pradesh and Chattisgarh.
The deal is subject to approvals and due diligence from lenders and JV (joint venture) partner of Jaiprakash Associates and regulatory authorities.
In addition, shares of Dalmia Bharat fell as much as 5.18 per cent to hit a day low of Rs 1,807.
Meanwhile, Indian equity benchmarks climbed in late morning trade, led by gains in bank, automobile and financial stocks.
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