The Board of Jaiprakash Associates Ltd at its meeting today approved the proposed sale of its 1.5 million tonnes per annum capacity cement grinding unit at Panipat on an ongoing concern basis to Shree Cement Ltd or any of its associates for a total enterprise value of Rs 360 crore, said JP Associates in a statement.
The proposed sale is subject to approval of the lenders of Jaypee Associates and other concerned authorities.
Commenting on the deal, Jaiprakash Associates Executive Chairman Manoj Gaur said the transaction is sequel to the decision of the Jaypee Group to bring down its debt and consolidate its operation.
Post this transaction, Jaypee Cement would continue to be India's third manufacturer with an aggregate capacity of over 29 million tonnes per annum.
Last year India's largest cement maker UltraTech Cement Ltd had acquired the Gujarat cement unit of Jaypee Cement Corporation for Rs 3,800 crore to help pare debt of the company.
Shares of JP Associates closed at Rs 51.80, down 0.10 per cent. Scrip of Shree Cement was at Rs 7,939, down 1.25 per cent.