Irish Co to pay Rs 4.2K cr for 51% stake in Jaypee cement unit

Debt-ridden Jaypee Group has reached an understanding with Ireland-based building material major CRH to sell 51% stake in its Gujarat cement facility for Rs 4,200 crore.

"Jaypee Group has reached an understanding with Irish firm CRH for offloading its 51% stake in the Gujarat cement manufacturing faciltiy for Rs 4,200 crore," a source close to the development said.

The Group is selling its majority stake in Gujarat plant to retire debt. The Group has a total debt of about Rs 40,000 crore on its books.

"Formalities are being worked out," he said.

The Jaypee Group, with interests in areas such as real estate, cement and hospitality, is the country's third largest cement maker with an installed capacity of 33.5 million tonnes, of which 23.7 MT comes under Jaiprakash Associates.

Operations in Gujarat and Andhra Pradesh, having a total capacity of 9.8 mtpa, are under the aegis of Jaypee Cement Corporation, which was recently hived off for stake sale.

While majority stake is being sold in Gujarat facility, Jaypee Group has changed earlier plans and would retain the Andhra Pradesh plant of 4.8 MT capacity.

CRH is already present in India since 2008 when it had acquired 50% stake in My Home Industries, privately- owned cement firm in Hyderabad. CRH had reported 18 billion euro revenue last year.