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Jaiprakash up on cement unit stake sale talk

Shares of diversified Jaiprakash Industries soared the maximum permissible 16 per cent on Tuesday, boosted by talk the company has finalised the sale of a part of its cement division, dealers said.

Company officials were not available for comment.

The diversified company has interests in engineering, cement, hydro-power and hotels.

The shares beat the benchmark Bombay index which was 0.68 per cent higher, and have risen more than 50 per cent in the last three trading sessions.

"Funds have been active buyers and the impetus has been provided by the rumour that a deal has been struck to sell part of its stake in the cement business," said a dealer at a local brokerage.

The company's chairman said in November he was ready to sell up to 50 per cent of its cement division before March 2001, and he expects to receive Rs 6 billion for the sale.

Company officials had said the cash would be used to repay its high-cost debt.

The firm owns two cement units with an annual capacity of 4.2 million tonnes in Madhya Pradesh.

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