Jaiprakash Associates amongst big gainers

Jaiprakash Associates is amongst the top gainers of the day, the stock currently up almost 4% at Rs.79.85, close to its intra day high at Rs.80.30.

The stock is up as once again news has got wind that Ultratech Cement is now in the final stages buying Jaiprakash Associates' 4.8-million-tonne cement plants in Gujarat for an enterprise value of Rs 4,100 crore. This will bring in 2.4 million tones capacity to Ultra Tech, making it the largest cement maker of India, ahead even of Holcim.

Jayprakash has stated that it plans to bring down its debt, which currently stands at around Rs.45,000 crore, down by Rs.8000 crore before the end of 2013. This sale of cement units is expected to bring down debt to the tune of Rs.4500 crore and it also plans to sell a few land parcels, hoping to raise another Rs.1000 crore.