Following a value increase of 10.70 percent in the previous trading session, shares of Jaiprakash Power Ventures Ltd closed 4.5 percent lower on Tuesday on the back of profit booking.
Jaiprakash Power Ventures witnessed a sharp surge on Monday after the company announced that the board was meeting to consider the proposal of divestment of Jaypee Nigrie Cement Grinding Unit.
Jaiprakash Associates on Monday said that it will sell its cement, clinker, and power plants to Dalmia Cement (Bharat), a subsidiary of Dalmia Bharat, for ₹5,666 crore.
Jaypee Group's plans for disposal essentially had a debt reduction goal. "In order to repay the loans of lenders and concentrate in its other core areas of working, Jaiprakash Associates has decided to divest from cement business completely," said Manoj Gaur, Executive Chairman, Jaiprakash Associates Ltd, in an exchange filing.
According to the exchange filing, the cement, clinker and power plants have aggregate cement capacity of 9.4 MT, along with clinker capacity of 6.7 MT, and thermal power plants of aggregate capacity of 280 MW.
The said plants are in Madhya Pradesh, Uttar Pradesh, and Chhattisgarh.
The stock has fallen 29.15 percent from its 52-week high of ₹11.2.
The company reported a consolidated net profit of ₹75.42 crore in Q2 FY23 as against a net loss of ₹1.42 crore in the year-ago period. Net sales increased 53.60 percent year on year to ₹1,385.37 crore in the September quarter.
