 "UltraTech Cement, Jaypee Group shares gain on cement business deal")
UltraTech Cement has rallied nearly 6% to Rs 3,600, also its record high on the BSE, in early morning trade after the company announced that its board has approved the acquisition of the Jaypee Group’s cement plants at an enterprise value of Rs 16,189 crore. LINK
“The board of directors of the company had approved a scheme of arrangement between the company, Jaiprakash Associates, Jaypee Cement Corporation and their respective shareholders and creditors for acquisition of cement plants for a total capacity of 21.2 million tonnes per annum (MTPA) at an enterprise value of Rs 16,189 crore,” UltraTech Cement said in a release.
“The operations will be strengthened by the consequent technological upgradation and enhancement in capacity utilisation on a year-on-year basis, creating synergies in manufacturing, distribution and logistics leading to economies of scale and creation of efficiencies by reducing lead time to markets, enhancing competitiveness and thereby benefiting consumers” it added.
The stock has erases its early morning surge and trading flat at Rs 3,421 on the BSE at 09:46 AM. On the NSE, the stock was quoting at Rs 3,418, after hitting high of Rs 3,465 in early morning trade.
A combined 70,279 shares changed hands on the counter on the BSE and NSE so far.
Meanwhile, Jaypee Group all three listed companies – Jaiprakash Associates (up 14% at Rs 10.38), Jaiprakash Power Ventures (6% at Rs 5.44) and Jaypee Infratech (5.5% at Rs 9.65) - were up more than 5% each on the BSE. The S&P BSE Sensex was down 0.06% at 27,263 points.
“The board of directors of the company had approved a scheme of arrangement between the company, Jaiprakash Associates, Jaypee Cement Corporation and their respective shareholders and creditors for acquisition of cement plants for a total capacity of 21.2 million tonnes per annum (MTPA) at an enterprise value of Rs 16,189 crore,” UltraTech Cement said in a release.
“The operations will be strengthened by the consequent technological upgradation and enhancement in capacity utilisation on a year-on-year basis, creating synergies in manufacturing, distribution and logistics leading to economies of scale and creation of efficiencies by reducing lead time to markets, enhancing competitiveness and thereby benefiting consumers” it added.
The stock has erases its early morning surge and trading flat at Rs 3,421 on the BSE at 09:46 AM. On the NSE, the stock was quoting at Rs 3,418, after hitting high of Rs 3,465 in early morning trade.
A combined 70,279 shares changed hands on the counter on the BSE and NSE so far.
Meanwhile, Jaypee Group all three listed companies – Jaiprakash Associates (up 14% at Rs 10.38), Jaiprakash Power Ventures (6% at Rs 5.44) and Jaypee Infratech (5.5% at Rs 9.65) - were up more than 5% each on the BSE. The S&P BSE Sensex was down 0.06% at 27,263 points.