UltraTech Cement is trading lower by 4% at Rs 1,655, extending nearly 2% fall on Friday, after its board approved acquisition of the cement unit of Jaypee Cement Corporation (JCCL), a subsidiary of Jaiprakash Associates, for Rs 3,800 crore.
The enterprise value of the transaction is Rs 3,800 crore. Of this, as much as Rs 3,650 crore is debt, which the Aditya Birla Group Company will inherit from the Jaypee unit that will be demerged from JCCL, UltraTech Cement said in a statement.
Meanwhile, analyst at Motilal Oswal Securities maintain ‘Buy’ on the stock and expect the transaction to derive meaningful synergistic benefits include premium branding driving improvement in realizations and profitability and savings on freight cost led by cement/clinker swap and market re-alignment.
The stock opened at Rs 1,750 and hit a low of Rs 1,640 on NSE. A combined 132,728 shares change hands on the counter so far on NSE and BSE.
The enterprise value of the transaction is Rs 3,800 crore. Of this, as much as Rs 3,650 crore is debt, which the Aditya Birla Group Company will inherit from the Jaypee unit that will be demerged from JCCL, UltraTech Cement said in a statement.
Meanwhile, analyst at Motilal Oswal Securities maintain ‘Buy’ on the stock and expect the transaction to derive meaningful synergistic benefits include premium branding driving improvement in realizations and profitability and savings on freight cost led by cement/clinker swap and market re-alignment.
The stock opened at Rs 1,750 and hit a low of Rs 1,640 on NSE. A combined 132,728 shares change hands on the counter so far on NSE and BSE.
