The Jaypee Group is a Rs 20,000 crore well-diversified infrastructural industrial conglomerate in India. Initially, the Jaypee Group started as civil engineering contractors. Jaiprakash Associates Ltd., the flagship company of the Group, is a leader in construction of river valley and hydro-power projects on turnkey basis for more than 4 decades. JAL has participated in the development of 27% of India’s installed hydro power capacity.
The stock of the company surges 3% as the board of Ultra Tech has approved a proposal for the acquisition of cement units of Jaiprakash Associates Limited (JAL) located in Madhya Pradesh. According to a report, The enterprise value of this acquisition has been agreed at Rs 5,400 crore. This acquisition will create significant synergies and the surplus clinker will enable UltraTech to augment its cement capacity by a further 1.8- 2.5 MTPA in addition to the 4.9 MTPA mentioned above. This acquisition will enable the Company to increase its presence in Satna cluster of MP. The Board has approved the Memorandum of Understanding setting out the broad terms and conditions of the proposed acquisition. The Enterprise Value of this acquisition has been agreed at Rs. 5,400 crores. The transaction is subject to customary due diligence, definitive agreements, and regulatory approvals as may be required.
In an interview with CNBC TV18, Manoj Gaur, Executive Chairman, Jaiprakash Associates, said that after the acquisition, the company is left with the almost 20 million tonne of cement capacity. Explaining the recent series of sale of entities of JP Group like the hydropower business and cement now, he said, " The real estate, cement, engineering business are very much intact. The company JAL had clocked a revenue at Rs 13,000 crore and this transaction is a statement that when we are fighting the after effect of the sluggish
economy in our country. As 2014 is coming to an end, almost Rs 20,000 crore of disinvestment took place. Rs 9,700 crore in hydro and Rs 1,400 crore of two plants in Madhya Pradesh and other than that was Bokaro and grinding unit at Panipat".
Commenting on whether the company will be able to generate Rs. 12000 crore revenues with the asset left and expectation from the next year, he said, "The fact is that this Memorandum of Understanding (MoU) has been just signed and it will take five to six months to fructify. So the effect will only be visible after June. So after this divestment debt in the main company would come down to around Rs 20,000 crore. But, the point is that Ultratech decided to take these assets after taking our Gujarat cement plant that shows the faith which they have in our assets. As far as JAL topline is concerned, the EPC business has been very sluggish in last three years because there hardly have been contracts. So I am confident that even for FY16, the turnover as a company will not be less than Rs 12,000 crore."
At 2:47PM, the stock of the company is trading up 8% at Rs. 25.40.
The stock of the company surges 3% as the board of Ultra Tech has approved a proposal for the acquisition of cement units of Jaiprakash Associates Limited (JAL) located in Madhya Pradesh. According to a report, The enterprise value of this acquisition has been agreed at Rs 5,400 crore. This acquisition will create significant synergies and the surplus clinker will enable UltraTech to augment its cement capacity by a further 1.8- 2.5 MTPA in addition to the 4.9 MTPA mentioned above. This acquisition will enable the Company to increase its presence in Satna cluster of MP. The Board has approved the Memorandum of Understanding setting out the broad terms and conditions of the proposed acquisition. The Enterprise Value of this acquisition has been agreed at Rs. 5,400 crores. The transaction is subject to customary due diligence, definitive agreements, and regulatory approvals as may be required.
In an interview with CNBC TV18, Manoj Gaur, Executive Chairman, Jaiprakash Associates, said that after the acquisition, the company is left with the almost 20 million tonne of cement capacity. Explaining the recent series of sale of entities of JP Group like the hydropower business and cement now, he said, " The real estate, cement, engineering business are very much intact. The company JAL had clocked a revenue at Rs 13,000 crore and this transaction is a statement that when we are fighting the after effect of the sluggish
economy in our country. As 2014 is coming to an end, almost Rs 20,000 crore of disinvestment took place. Rs 9,700 crore in hydro and Rs 1,400 crore of two plants in Madhya Pradesh and other than that was Bokaro and grinding unit at Panipat".
Commenting on whether the company will be able to generate Rs. 12000 crore revenues with the asset left and expectation from the next year, he said, "The fact is that this Memorandum of Understanding (MoU) has been just signed and it will take five to six months to fructify. So the effect will only be visible after June. So after this divestment debt in the main company would come down to around Rs 20,000 crore. But, the point is that Ultratech decided to take these assets after taking our Gujarat cement plant that shows the faith which they have in our assets. As far as JAL topline is concerned, the EPC business has been very sluggish in last three years because there hardly have been contracts. So I am confident that even for FY16, the turnover as a company will not be less than Rs 12,000 crore."
At 2:47PM, the stock of the company is trading up 8% at Rs. 25.40.
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