JP Associates' stock price up by 34% in the past 5 days

11 Oct 2022 , 09:56 AM

In intraday trading on Monday, shares of Jaiprakash Associates rose 13% to Rs12.04 on the BSE amid significant activity over the company’s intention to sell its cement business in order to pay down debt.

The board of directors resolved to divest the company’s large cement business at their meeting held today, October 10, 2022, among other things, to support the Company’s continued efforts to lower its debt, Jaiprakash Associates stated in an exchange filing.

The stock was trading close to its January 11, 2022 high of Rs13.10, which was a 52-week high. The stock has increased 72% after reaching a 52-week low of Rs7.01 on June 21.

The stock was up 11% at Rs 11.88 at 2:50 PM, while the S&P BSE Sensex was down 0.45% at the same time. Today, the counter’s average trading volumes increased by a factor of almost seven. Up till the time, this report was written, 207.58 million equity shares had traded hands on the NSE and BSE together.

According to a Bloomberg story, the Adani Group, owned by billionaire Gautam Adani, is in advanced negotiations to acquire the cement division of the indebted Jaiprakash Power Ventures.

A cement grinding plant and other minor assets might be purchased by the ports-to-power company for roughly Rs5,000 crore ($606 million), according to the article. Aside from that, media sources claim that Jaiprakash Associates has been sued for a debt default totaling Rs6,892.48 crore by the State Bank of India (SBI), who allegedly filed a corporate bankruptcy case against the company.

On September 30, the firm made it clear that, contrary to what was claimed in the news item’s title, it has not yet received any notification from the National Business Law Tribunal (NCLT) about the filing of a petition under the Indian Business Code (IBC) against the company.

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