Jaiprakash Associates signs binding Framework Agreement with Dalmia Group

In line with the continuing endeavour of Jaypee Group's resolve to reduce its debt, a binding Framework Agreement has been signed today, the 12th December, 2022, by Jaiprakash Associates Limited (JAL) & its associate company, namely, Jaiprakash Power Ventures Limited, for divestment of the identified Cement, Clinker and Power Plants having aggregate cement capacity of 9.4 MnT, along with Clinker capacity of 6.7 MnT and Thermal Power plants of aggregate capacity of 280 MW, to Dalmia Cement (Bharat) Limited (DCBL), wholly owned subsidiary of Dalmia Bharat Limited, for an aggregate Enterprise Value of Rs.5,666 Crores. The said plants are situated at Madhya Pradesh, Uttar Pradesh, and Chhattisgarh.

The transaction is subject to due-diligence, receipt of the requisite statutory approvals and necessary compliances including the approvals from lenders / JV partner of JAL and regulatory authorities.

Commenting on the development, Shri Manoj Gaur, Executive Chairman Jaiprakash Associates Limited, observed: "Jaiprakash Associates Ltd. (JAL), the flagship company has been taking steps to reduce its debt and repay to lenders and meet its commitments on pro active basis. In this regard, JAL had divested more than 20 MTPA cement capacity in favour of MIs. UltraTech Cement Limited during 2014 and 2017, while selling its controlling stake of more than 2 MTPA cement capacity to Dalmia Group in 2015.

In order to repay the loans of lenders and concentrate in its other core areas of working, JAL has decided to divest from cement business completely. With the sale of cement capacity of 9.4 MTPA in favour of Dalmia Cement (Bharat) Ltd. (DCBL), we hope and pray having demonstrated its creditable working, JAL will further 'cement' its credentials of being a trustworthy organization in infrastructure segment of the country in times to come".

With a view to fulfill the commitment to reduce its debt, the Group has already divested its various Cement and Power Plants to other leading industrial Groups of the Country. The present transaction with Dalmia Group yet again demonstrates the quality of assets of Jaypee Group.

Coeus Advisors assisted JAL as Transaction Advisors, EY as the Financial & Tax Advisors and Vaish Associates as the Legal Advisors for the transaction.

Shares of Jaiprakash Associates Limited was last trading in BSE at Rs. 10.45 as compared to the previous close of Rs. 10.43. The total number of shares traded during the day was 892761 in over 2177 trades.

The stock hit an intraday high of Rs. 10.71 and intraday low of 10.37. The net turnover during the day was Rs. 9388823.00.

Source : Equity Bulls

Keywords

JaiprakashAssociates INE455F01025 BindingAgreement AssetSale CementUnits DalmiaCementBharat