The acquisition will enable Dalmia to expand its footprint into the central region and will represent a significant step towards realization of its vision to emerge as a pan-India cement company with a capacity of 75 MnT by FY27 and 110‐130 MnT by FY31.

The transaction is subject to due‐diligence, requisite approvals from lenders/JV partner of Jaiprakash Associates and regulatory authorities.

With a growing capacity, currently pegged at 37.0 MnT, Dalmia Bharat is the fourth‐largest cement manufacturing company in India by installed capacity, spread across 10 states and 14 manufacturing units.

Manoj Gaur, executive chairman Jaiprakash Associates, observed:- "Jaiprakash Associates ltd. (JAL), the flagship company has been taking steps to reduce its debt and repay to lenders and meet its commitments on pro active basis. In this regard, JAL had divested more than 20 MTPA cement capacity in favour of MIs. UltraTech Cement Limited during 2014 and 2017, while selling its controlling stake of more than 2 MTPA cement capacity to Oalmia Group in 2015.

In order to repay the loans of lenders and concentrate in its other core areas of working, JAL has decided to divest from cement business completely. With the sale of cement capacity of 9.4 MTPA in favour of Dalmia Cement (Bharat) ltd. (DCBL), we hope and pray having demonstrated its creditable working, JAL will further 'cement' its credentials of being a trustworthy organization in infrastructure segment of the country in times to come".

With a view to fulfill the commitment to reduce its debt, the Jaypee Group has already divested its various cement and power plants to other leading industrial groups of the country.

On the BSE, shares of Jaiprakash Associates were down 5.37% at Rs 11.11; Jaiprakash Power Ventures were down 3.61% at Rs 8; and Dalmia Bharat were down 3.24% at Rs 1844.