NEW DELHI: Shares of Jaiprakash Power Ventures Ltd on Monday surged nearly 4% after the Jaypee Group announced plans to divest their cement business as well as some non-core assets to reduce debt.
Jaiprakash Power opened on a positive note in morning session today, then it surged to Rs 8.53 on the BSE before closing 3.8% higher at Rs 8.46 per share.
Earlier in the day, the company announced its decision to sell their cement business. The decision comes against the backdrop of a recent plea by the country's biggest lender SBI to initiate insolvency proceedings against Jaypee group's flagship firm Jaiprakash Associates Ltd (JAL).
"With a view to give thrust to the ongoing efforts of the company to reduce its debt, the Board of Directors in their meeting... decided to divest company's significant cement business," JAL said in a regulatory filing.
The board of Jaiprakash Power Ventures Ltd (JPVL) has also "decided to divest company's Nigrie Cement Grinding Unit as well as other non-core assets", according to another regulatory filing.
(With inputs from agencies)
