Jaiprakash considers restructuring operations

Jaiprakash Associates plans to consolidate its entire cement manufacturing operations under one company that it will eventually list on the stock exchanges, according to local press reports.

An official source familiar with the development told Cogencis said that the restructuring exercise that the company is discussing with merchant bankers will award shares of the new company to the existing shareholders of the parent company.

Manoj Gaur (executive chairman and founder's son) has given in-principle approval to the scheme," the official said.

In March, the board of Jaiprakash Associates approved sale of the company's 74 per cent stake in Bokaro Jaypee Cement Ltd, its joint venture with Steel Authority of India Ltd, to Dalmia Cement (Bharat) Ltd. A few months previous in December 2012, Jaypee Cement Corp Ltd, a wholly-owned subsidiary of Jaiprakash Associates, signed an agreement with UltraTech Ltd for sale of its Gujarat cement plant comprising an integrated 2.4Mta cement plant in Kutch and a 2.4Mta cement grinding Unit in Wanakbori.