JP Associates shines and sparkles

JP Associates is in the limelight today morning. The stock briefly breached the upper circuit at Rs.8.40  and it is currently up almost 15% at Rs.8.73 with an intra day high at 8.99.

The stock is jumping up on news that Ultratech Cement has bought its much needed cement plants for Rs.15,900 crore.

This deal is for 21.2 mtpa capacity and includes plants spread across UP, Himachal Pradesh, Uttarakhand, Haryana and Madhya Pradesh.

Apart from Rs,15,900 crore another Rs.470 crore will be paid for completion of the work-in-progress grinding unit in UP.

The payment deal – Ultratech will takeover Rs.11,900 crore worth of debt from the books of JP Associates and will refinance this at around 9%. Balance money is to be funded via debt to be raised by Ultratech.