 "UltraTech eyes Jaypee's three cement plants in Madhya Pradesh")
While investment banking sources involved in the talks said that the discussions are currently under way for a possible deal, a spokesperson for UltraTech declined to comment on queries in this regard.
When contacted, Jaypee Group spokesperson Askari Zaidi denied any plans for sale of these plants.
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"This information is not correct. The company has no plan to sell its Reva cement plants," he said.
Sources, however, maintained that UltraTech is looking to acquire the three cement plants of Jaypee Group in Reva, Madhya Pradesh and pegged the valuation at around Rs 5,500- 6,000 crore. They added that the discussions are currently focussed mainly on valuation part.
In the June quarter, UltraTech had completed the acquisition of Gujarat units of Jaypee Cement Corp comprising an integrated unit at Sewagram and a grinding unit at Wanakbori with a combined capacity of 4.8 million tonnes per annum.
A leading market player, UltraTech is into manufacturing grey cement, ready mix concrete and white cement in the country. The company has an installed capacity of 62 million tonnes per annum for grey cement.
Ultratech has 12 integrated plants, 16 grinding units and six bulk terminals, among others, as per its website.
A diversified entity, Jaypee Group has good presence in the cement sector.
According to its website, it produces special blend of portland pozzolana cement and has an aggregate capacity of 33.8 million tonnes per annum.
In recent times, Jaypee Group has been looking to divest some of its assets across sectors, as part of larger efforts to bring down its debt burden.
On the BSE, shares of UltraTech fell over three per cent to close at Rs 2,558.90 while the scrip of Jaiprakash Associates gained more than two per cent to close at Rs 27.30.