Jaiprakash Associates is reportedly in the final stages of offloading its 100 per cent stake in the 4.8-mn tpa Gujarat cement plant for Rs 4,000 crore at an enterprise valuation of $150 a tonne, according to a Credit Suisse report.
Jaiprakash Associates, which is the parent company of the Jaypee Group, wants to sell the unit in order to repay part of its debt.
The report adds that lack of fund-raising would deteriorate its debt coverage ratios and result in lenders charging a higher interest rate for the firm.
The consolidated debt of the company stood at Rs 53,174 crore as of March 2011. Its standalone debt, as of September 2012, was Rs 19,549 crore, exchange filings showed.
The company raised huge debt to finance several of its high-cost infrastructure projects, including the Noida-Delhi Expressway, apart from investing in cement units.
Jaiprakash Associates and the Birlas held discussion on the stake sale and the former was demanding a valuation of $170 a tonne. However, Birlas refused to agree to that and hence the deal was delayed. It is learnt that the deal may be carried out at $150 a tonne.
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