UltraTech disputes JP Associates claim on 10-bln-rupee preference shares

4 Jul 2022

UltraTech Cement Ltd today disputed the claim made by Jaiprakash Associates Ltd that it had defaulted on redemption of preference shares issued to Jaiprakash Associates.

The redemption was due on Friday as per terms of the issue, Jaiprakash Associates said in its filing on Saturday.

UltraTech had made different issues of preference shares and non-convertible debentures of around 46.3 bln rupees in 2017-18 as part of its 161.9-bln-rupee deal with Jaiprakash Associates and Jaypee Cement Corporation to acquire their cement plants, spread across five states, having total annual capacity of 21.2 mln tn.

Of these issues, many had been redeemed in that year itself.

The preference share issue that was due to be redeemed on Saturday was for 10 bln rupees.

UltraTech said in its filing that it “had offered” redemption of the preference shares after “adjustment of costs to be borne by” Jaiprakash Associates, “in compliance with the transaction arrangements.”

UltraTech said that it was expecting Jaiprakash Associates “to honour its obligations and execute necessary documentation for the redemption.”

The company did not specify the quantum of costs that had to be paid by Jaiprakash Associates.