Shares of UltraTech Cement jumped as much as 1.5 per cent in the morning trade on Thursday after Competition Commission of India (CCI) approved the merger of the company with Jaiprakash Associates, Jaypee Cement Corporation. Reacting on the news, Jaiprakash Associates share price advanced as much as 5.75 per cent.
UltraTech Cement informed bourses about the nod on Wednesday and said, “Competition Commission of India has by its letter dated August 8, 2016 informed the company that it has approved the proposed combination under sub-section (1) of section 31 of the Competition Act, 2012. Copy of the CCI order is awaited.”
Earlier, Ultratech Cement in March informed bourses that the board has approved the acquision of Jaypee Group’s cement plants in Himachal Pradesh, Uttar Pradesh, Madhya Pradesh, Uttarakhand and Andhra Pradesh with a total capacity of 21.20 million tonnes per annum at an enterprise value of over Rs 16,189 crore.
The turnover of Jaiprakash Associates Ltd cement plants stood at Rs 3718 crore as on March 31, 2016. On the other hand, JCCL Cement plant turnover stood at Rs 826 crore.
The transaction would raise UltraTech Cement’s installed annual capacity by one-third to about 91.10 million tonnes.
For the quarter ended June 30, 2016, UltraTech Cement reported a net profit of Rs 774.92 crore against Rs 590.79 crore in the corresponding quarter a year ago. Revenue of UltraTech Cement jumped to Rs 6,232.53 crore for the quarter ended June, 30 2016 against Rs 6,097.48 crore in the same quarter a year ago.