JP Associates shines and sparkles

JP Associates is currently the top gainer on the BS, up almost 7% at Rs.7.25 with volumes jumping up over one time.

The stock is in the limelight following its announcement yesterday that UltraTech Cement has acquired its cement plants and grinder unit for around Rs.17,000 crore. These cement plants have a capacity of 22.4 MTPA and are located all across India. Post this acquisition, UltraTech’s cement capacity will go up to 90.7 mtpa from the current 68.3 mtpa.

The JP group currently is sitting on a debt of around Rs.60,000 crore and all the money raised by selling assets will be used to bring down debt. JP Associates has (standalone) debt is at Rs.31,000 crore and after this sale, its debt will come down to around Rs.14,000 crore.