Jaiprakash to sell stake in cement unit for 6.9 bln rupees

NEW DELHI Mon Mar 24, 2014 8:53pm IST

Related Topics

Stocks

   
A statue of Ganesh, the deity of prosperity, is carried in a taxi to a place of worship on the first day of the ten-day-long Ganesh Chaturthi festival in Mumbai August 29, 2014. REUTERS/Danish Siddiqui

Ganesh Chaturthi Festival

During Ganesh Chaturthi idols will be taken through the streets in a procession accompanied by dancing and singing, and will be immersed in a river or the sea in accordance with Hindu faith.  Slideshow 

NEW DELHI (Reuters) - Jaiprakash Associates Ltd (JAIA.NS) has agreed to sell its 74 percent stake in Bokaro Jaypee Cement to Dalmia Cement (Bharat) Ltd for 6.9 billion rupees, as the group seeks to cut its growing debts.

Indian power and infrastructures companies are suffering under the strain of large debts, a struggle to get projects approved and a slowdown in the Indian economy in recent months.

Jaiprakash and its subsidiaries have total debts of 620 billion rupees, up from between 550 billion and 560 billion in September, Executive Chairman Manoj Gaur told CNBC TV 18. The company plans to cut its debts by 250 billion rupees by the end of March 2015 through more asset sales, he added.

"The intention is to give less and less pain to the bankers and remain creditworthy in the eyes of the bankers," Gaur told the TV channel.

The Bokaro Jaypee Cement deal is subject to the approval of Steel Authority of India Ltd (SAIL.NS), its joint venture partner, Jaiprakash said on Monday after a board meeting.

Jaiprakash and its subsidiaries have already made a number of disposals in recent months.

Jaiprakash Power Ventures agreed to sell two power plants earlier in March to an Abu Dhabi-led consortium for $1.6 billion.

The company sold its cement plant in Gujarat state to UltraTech Cement last year.

Jaiprakash, founded by Jaiprakash Gaur, is known in India as the builder behind the country's only Formula One track.

(Reporting by Tommy Wilkes; Editing by David Holmes)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Market Eye

REUTERS SHOWCASE

HSBC PMI

HSBC PMI

Factory activity expands at slower clip in August.  Full Article 

Modi in Japan

Modi in Japan

Japan aims to double India investment in 5 years - Nikkei  Full Article 

Market Outlook

Market Outlook

Indian shares headed for correction, but outlook strong - BofA Merrill.  Full Article 

India Infrastructure

India Infrastructure

RBI rule handicaps India's infrastructure hopes  Full Article 

Book Talk

Book Talk

Reema Abbasi and a glimpse of Pakistan’s Hindu past  Full Article 

China Economy

China Economy

Retreat in China's PMIs heightens calls for policy easing.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage