Jaiprakash Associates (JAL) has reportedly signed an agreement with Shree Cement to divest its stake in the 2.1Mta Bhilai Jaypee Cement (BJCL) as part of debt reduction efforts, the Times of India reports.
A senior banker said JAL has agreed to divest its 74 per cent stake in the joint venture with SAIL as financial pressure has increased.
Neither parties have commented on or confirmed the speculation, with JAL terming the speculation as a “market rumour.”
In 2014 JAL had signed an MoU to sell the plant to Shree Cement, but the deal did not materialise.
BJCL has a cement manufacturing plant at Satna in Madhya Pradesh and a split grinding unit at Bhilai in Chattisgarh.
JAL has already sold a large number of assets to reduce its debt burden and get back into financial shape.