Shares in JP Associates jumped almost 14 per cent, after the company sold its cement assets to Ultratech for Rs 15,900 crores.
The deal is for 21.2 million, which includes a host of states in Northern India. Shares of JP Associates were last trading at Rs 8, up about 14 per cent on the National Stock Exchange.
State Bank of India, IDBI Bank and ICICI Bank have a huge exposure in terms of loans to the JP Associates group.
JP Associates is a diversified company, with interests in infrastructure, cement, power, real estate etc.
In the last few years the company's performance has been affected by a slowdown in the economy, as well as high debt. Most of the businesses of the company are capital intensive, which is one of the reasons for the heavy debt on the books.