Manoj Gaur's JP Associates is expected to announce the sale of it's Gujarat-based cement unit to UltraTech in the next few days, sources with direct knowledge said. JP Associates could raise close to Rs 4000 crores by selling the 4.8 mt cement plant to the KM Birla's UltraTech Cement. Mounting pressure from the lenders of JP Associates could be the prime reason for the deal to finally materialize after a year of discussions.
Jaypee Group has a total debt of Rs 64,000 crores and besides the cement unit sale, the group is engaged in multiple discussions to sell power assets as well. The company could be looking at raising over Rs 10,000 crores via asset sales.
Sources with direct knowledge share that Sanjiv Goenka's CESC is in talks with JP Power for buying out the 500 MW Bina Power Project and the valuation talks are hovering around Rs 1,500 to 1,750 crores.
Sources also suggest that Gulf Investors from Qatar, Kuwait and Abu Dhabi are in talks with JP Power for buying their hydro power projects, Baspa (300 MW) and Karcham Wangtoo (1200 MW). Deal could be worth close to Rs 5,000 crores, talks are around $700-850 million.
Jaypee Group did not comment on the developments, UltraTech also did not respond to the e-mail query.