Jaiprakash Associates shares surge 34% post Rs 16,000 crore deal with UltraTech

Shares of Jaiprakash Associates surged 34% at Rs 12.17, during the early trade on BSE, after the company announced deal with UltraTech Cement on Monday.

After closing at Rs 9.08 yesterday, the shares today touched a high at Rs 12.50 and low at Rs 9.80.

Aditya Birla group arm, UltraTech cement agreed to buy Jaiprakash Associates' cement plants at an enterprise value of Rs 16,189 crore. 

In a regulatory filing, Jaiprakash Associates informed BSE that the company has reviewed the progress of divestment plans and approved the Scheme of Arrangement with UltraTech Cement Limited.

Manoj Gaur, Executive chairman of Jaypee Group, said, "Jaypee Group is determined to reduce its overall debt through its proactive divestment initiatives to help the Group tide these current turbulent times caused by economic slowdown".

The transaction is subject to various regulatory approvals including the approval of Stock Exchanges, Competition Commission of India, Financial Institutions and banks, shareholders and creditors.