According to the company, the Aditya Birla Group firm will acquire its subsidiary Jaypee Cement Corporation's stake in the 4.8 million tonne per annum (TPA) Gujarat plant.
"Jaypee Group continues to be on course to bring down the debt and consolidate its operations in the given economic scenario," Manoj Gaur, executive chairman, Jaiprakash Associates, said.
"UltraTech cement with this acquisition has demonstrated faith in India's future growth as well as in the quality of assets for which Jaypee Group is known.
Gujarat Cement Plant comprises an integrated 2.4 million TPA cement plant at Kutch and a 2.4 million TPA cement grinding unit at Wanakbori.
The plant is coupled with a coal-powered thermal plant, limestone reserves and a captive jetty at Sewagram.
The company said even after the deal, expected to be completed in seven or nine months after receiving mandatory approvals, it will remain the country's third largest cement producer.
Currently, the company has an installed capacity of 36.8 million TPA.
The company was earlier looking for buyers for its Gujarat and Andhra Pradesh facilities which have a combined capacity of 9.8 million TPA.
It plans to raise around Rs.15,000 crore for debt repayment and capacity expansion.
--IANS (Posted on 11-09-2013)