Jaiprakash Associates lost 3.69% to Rs 41.80 at 9:23 IST on BSE, with the stock sliding on profit taking after the firm said its subsidiary has executed a pact with UltraTech Cement for sale of a cement plant for an enterprise value of Rs 3800 crore.
The announcement was made after market hours on Wednesday, 11 September 2013.
Meanwhile, the S&P BSE Sensex was down 53.54 points or 0.27% at 19,943.91.
On BSE, 13.27 lakh shares were traded in the counter as against average daily volume of 58.43 lakh shares in the past two weeks.
The stock hit a high of Rs 44.80 and a low of Rs 40 so far during the day.
Shares of Jaiprakash Associates had rallied 26.71% in five trading sessions to settle at Rs 43.40 on Wednesday, 11 September 2013, from a recent low of Rs 34.25 on 3 September 2013.
Jaypee Cement Corporation (JCCL), a 100% owned subsidiary of Jaiprakash Associates has reached an agreement to sell its 4.8 MTPA Gujarat Cement Plant to UltraTech Cement for an enterprise value of Rs 3800 crore, besides the actual net working capital. Gujarat Cement Project consists of an integrated cement plant at Kutch and a 2.4 MTPA cement grinding unit at Wanakbori.
The proposed transaction is subject to the approval of shareholders and creditors, sanction of the Scheme of Arrangement by the High Courts, approval of the Competition Commission of India and all other statutory approvals. Jaiprakash Associates said it anticipates the transaction to close in 7 to 9 months.
Over the past decade, Jaiprakash Associates increased its cement capacity from 4.40 MT in 2002 to 36.8 MT, and post this deal will continue to remain the third largest cement manufacturer in the country, the company said.
Jaiprakash Associates' net profit surged 140.9% to Rs 334.51 crore on 10.8% growth in net sales to Rs 3283.26 crore in Q1 June 2013 over Q1 June 2012.
Jaiprakash Associates is a diversified company with business interest in construction, power, cement, real estate and hospitality.
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