Orient Cement calls off deal with Jaypee Group; stock gains 15%

The stock rallied 15% to Rs 140 on the BSE in intra-day trade on back of heavy volumes

Orient Cement has moved higher by 15% to Rs 140 on the BSE in intra-day trade, after the company announced the termination of an agreement with Jaypee Group companies to acquire Nigrie cement grinding unit and Bhilai Jaypee Cements due to its inability to complete the deal within the stipulated timeframe.

Orient Cement on May 31, 2017 had executed share purchase agreement entered into between the Company and Jaiprakash Associates for the acquisition by the Company of 74% equity shares of Bhilai Jaypee Cement from Jaiprakash Associates; and business transfer agreement entered into between the Company, Jaiprakash Power Ventures