The Company earlier raised Equity Funds to the extent of Rs.532.90 Cr by allotting of equity shares at an issue price of Rs.83 per share through QIPs. This will give some temporary relief to its working capital needs. Later it might sell its cement division to cut down its debt drastically. Moreover, there were also BSE announcements that 89, 39, 157 shares of Jaypee Infra Ventures, a promoter group company of J P Associates Ltd, which were encumbered have been released. This is good news and shows that the worst could be behind the company.
Earlier there were reports that Jaiprakash Associates Limited was planning to sell its cement plants in Gujarat and Andhra Pradesh to UltraTech Cement Limited and France based Lafarge to reduce its debt level. The report further added that Holcim was also interested acquiring the cement assets of Jaiprakash Associates Ltd. Last year, J P Associates hived Gujarat's and AP's cement plants into as a separate company called Jaypee Cement Corp. It runs two plants in Sewagram and Wanakbori in Gujarat, with a capacity of 2.4 Mn tons, and a 5-Mn-tons unit in Andhra Pradesh's Krishna district.