Jobaaj Stories
Gautam Adani, Asia's richest man, and his Adani Group are reportedly in advanced talks with the distressed Jaiprakash Power Ventures Ltd. to buy its cement unit.
Jaiprakash Associates, a construction firm, has been in trouble for a while. In March 2022, the firm defaulted on repayment of Rs 2,897 crores to its lenders. A total of 35 banks had exposure to the distressed company as it had a total outstanding debt of over Rs 27,000 crores!
Jio looking to raise $2.5 billion via foreign loans, read more to know why!
In 2018, ICICI filed an insolvency petition but the same was adjourned for 4 years. Ultimately, SBI dragged the company to the NCLT for initiation of insolvency proceedings against it in September 2022. SBI had alleged consistent defaults with irregular payments against the company at the Allahabad bench of NCLT.
Reports have suggested that the cement business of the distressed group could be purchased for as much as Rs 5,000 crores. The deal will include a cement grinding unit with a capacity of 2 million tons per year and other smaller assets.
The acquisition will be made by one of the cement units recently acquired by the Adani Group with an announcement regarding the same to be out within a week. Although the talks are in the advanced stages, they could be delayed or fall apart entirely.
This deal will allow the Adani Group to consolidate its dominant presence in the Indian cement sector as the second-largest player ever since it acquired Ambuja and ACC in May 2022. In a separate announcement, Jaiprakash Associates has said that its Board has approved the divestiture of its cement business to manage its debt but did not name a buyer.
The stock of Jaiprakash Associates jumped over 10% to close at Rs 11.75 per share on Monday.
Article by Aman Agarwal.
This news piece is brought to you in association with Jobaaj.com
