Shares of Jaiprakash Associates surged nearly 12 per cent today after the debt-ridden Jaypee Group announced part sale of its cement business to Kumarmangalam Birla-led Ultra Tech for Rs 15,900 crore.
The stock advanced by 11.65 per cent to settle at Rs 8.53 on BSE. Intra-day, it zoomed 17.67 per cent to Rs 8.99.
Buying was also seen in other group stocks, where Jaiprakash Power Ventures soared 7.26 per cent and Jaypee Infratech rose by 5.36 per cent.
Shares of UltraTech Cement however, fell by 0.70 per cent to end at Rs 3,204.45.
In one of the biggest deals in the domestic cement industry, debt-ridden Jaypee Group yesterday announced part sale of its cement business to Kumarmangalam Birla-led Ultra Tech for Rs 15,900 crore.
The transaction will see UltraTech become possibly the biggest cement player in the country after gaining an overall capacity of 21.2 million tonne per annum from Jaypee's cement plants in five states and a grinding unit in Uttar Pradesh.
The value of the transaction, however, has been reduced from Rs 16,500 crore announced last month as Jaiprakash Associates Ltd's (JAL) Karnataka plant with a capacity of 1.2 million tonnes per annum (MTPA) has been excluded.
Announcing the deal, JAL in a filing to BSE said its board approved the definitive agreement with UltraTech Cement (UTCL) for sale of part of its cement business.
