Dalmia India Agrees To Buy Jaiprakash Cement And Power Assets For Rs 5,666 Crore
December 14, 2022: Shares of Jaiprakash Associates rose 10 percent on the BSE to Rs. 11.74, while Dalmia Bharat gained 3.3 percent to Rs. was at 1,905.
Dalmia Cement (Bharat) Limited (DCBL), a wholly owned subsidiary of Dalmia Bharat Limited, in an effort to expand its footprint in the states, including debt of Rs. 5,666 crore has agreed to buy the cement and power business of Jaiprakash Associates Ltd.
Madhya Pradesh, Uttar Pradesh and Chhattisgarh. Dalmia Bharat informed that its wholly-owned subsidiary Dalmia Cement Bharat Limited (DCBL) has “entered into a binding framework agreement for the acquisition of clinker, cement and power plants from Jaiprakash Associates Limited and its associate,” the company said in a BSE filing.
Filing today. The deal includes a total cement capacity of 9.4 million tonnes per annum (MnT), clinker capacity of 6.7 MnT and Rs. This includes a 280MW thermal power plant with an enterprise value of Rs 5,666 crore, he mentioned.
Shares of Jaiprakash Associates rose 10 percent on the BSE to Rs. 11.74, while Dalmia Bharat gained 3.3 percent to Rs. was at 1,905.70.
Dalmia, which has 14 cement manufacturing units in 10 states, said the deal is a “significant” step towards reaching 110 mtpa (million tonnes per annum) to 130 mtpa capacity by fiscal 2031, from its existing capacity of 37 mtpa.
The transaction is subject to due-diligence, the receipt of necessary approvals from the firm’s lenders, its joint venture and regulatory authorities.
With this agreement, Jaiprakash Associates, the flagship company of the Jayaprakash Associates, has decided to divest completely from the cement business.
Earlier, to reduce debt, Jaiprakash Associates sold 20 mtpa of cement capacity in favor of Ultratech Cement, the country’s top cement producer, between 2014 and 2017.
Manoj Gaur, Executive Chairman, Jaiprakash Associates said, “Jaiprakash Associates Company is taking steps to reduce its debt and repay creditors and meet its commitments on a proactive basis.”
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