Jaiprakash Associates shares rallied 15% today. Here's why

Shares of Jaiprakash Associates Ltd climbed over 15 per cent in Wednesday's trade amid a media report suggesting Adani Group was in discussions with the company to acquire Jaypee Shahabad cement plant. As per the report by ET NOW, the Karnataka plant has an annual operating capacity of 1.2 MT and also includes a 60 MW captive power plant.

The talks between the Adani group and Jaiprakash for the proposed buyout is ongoing, ET NOW said.

Following the development, the stock rose 14.66 per cent to hit a high of Rs 13.45 on BSE. An ET report had in 2022 suggested that the Adani group was in advanced talks to buy Jaiprakash Group's cement business for around Rs 5,000 crore.

But the group later denied the report. That time, the deal had reportedly included a cement grinding unit and smaller assets from Jaiprakash Associates and Jaiprakash Power Ventures.

Earlier today, another stock Orient Cement was in news, as an ET report suggested that promoter and industrialist CK Birla had approached Gautam Adani to sell his stake in the listed cement manufacturer. The ET report, quoting sources, said Birla had rejected previous offers from peers for failing to meet his valuation demand.

As per the report, the senior management executives on both sides met to discuss a potential deal. Adani Cement, which recently acquired Sanghi Industries, has a total cement capacity of 110 mt and has the second-largest domestic cement capacity.

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