Jaiprakash Associates Ltd is all set to consider selling stake in its cement joint venture subsidiaries with SAIL in its board meeting on Monday.
The company in a filing to the BSE on Monday morning notified that a meeting of the board of directors of the company will be held on 24 March 2014, inter alia, to consider stake sale in joint venture subsidiaries.
Though the company didn’t disclose the details of the JVs in which it plans to sell its stake, the source closer to development said that the company may be considering selling its 74% stake in its cement JV with SAIL for two cement plants in East India to cement major ACC Ltd.
The spokesperson at JP Associates said that board meeting is likely to conclude by evening.
The company which is India’s third largest cement producer with total current capacity of 33.30 mtpa has been is talks with various players to part with its 74% stake in Bhilai and Bokaro cement plants that together have an installed capacity of 4.3 mtpa.
If the board does give approval to stake sale in cement JVs, it would be the Jaypee group’s second asset sale in less than a month and fourth this fiscal to pare its huge debt burden. As at end of December 2013, the group had a consolidated debt of nearly Rs 60,000 crore.
The company’s subsidiary Jaiprakash Power Ventures Limited had on March 3 announced the sale of the Baspa Stage II and Karcham Wangtoo hydro power-electric plants with combined capacity of 1392 megawatts (MW) for an enterprise deal value of $1.616 billion to consortium led by Abu Dhabi National Energy Company PSJC (TAQA).
JP Associates had earlier in September 2013 entered into agreement with Ultratech to sell its two cement facilities in Gujarat with total capacity of 4.8mtpa for enterprise value of Rs 3,800 crore.
The stock of JP Associates on Monday surged by as much as 3.62% to touch Rs 50.10 on BSE in the morning and was last trading (at 1.58pm) at Rs 49.80.
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