Mumbai: Jaiprakash Associates Ltd, the engineering and infrastructure unit of the debt-laden Jaypee Group, on Wednesday reported a net loss of Rs.106.5 crore for the September quarter, at a time when the promoters are actively seeking to pare debt.
Jaiprakash Associates Limited has informed the Exchange that "It is understood that rumors are being planted in the market by the persons with vested interests suggesting that the Promoters are selling their share holding in the Company.
Bhilai Jaypee Cement Limited is a joint venture between Jaiprakash Associates, which holds 74% stake in the unit and the Steel Authority of India Ltd (SAIL), which holds 26%. The cement plant, which has revenues of US$130m/yr, has US$97.5m of debt.
Mumbai: Jaypee Group's unit Jaiprakash Associates Ltd will seek the permission of it shareholders to raise loans up to Rs40,000 crore and raise another Rs5000 crore via private placement of non-convertible debtenture or other debt instruments.
Mumbai: Jaiprakash Associates Ltd is attracting investors including Birla Sun Life Asset Management Co. as the builder of India's only Formula One racing track moves closer to its target of cutting debt by $2.4 billion.
Jaiprakash Associates Ltd's expansion into unrelated businesses is puzzling analysts. The company, which is predominantly into cement production, construction and real estate development, entered agriculture-related and hospitals businesses.
In a chat with ET Now, Ashwani Gujral, Fund Manager, Ashwanigujral.com, shares his view on JP Associates Ltd. ET Now: What is your call on JP Associates Ltd? Ashwani Gujral: JP Associates Ltd is a 'BUY' call with a target of Rs 49 and a stop loss of Rs 41.