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India's largest cement producer, UltraTech Cement is the front runner to acquire India Cement's project in Madhya Pradesh, sources told CNBC Awaaz.

Shares of India Cement gained as much as 7.2 percent in intraday trading to Rs 263.35 after the story was reported.

Sources also mentioned that the company is in talks with JSW Cement, Birla Group, and Adani Group for the sale of the cement plant.

The Madhya Pradesh project with the Limestone mine is valued at nearly Rs 800 crore.

India Cements had earlier planned to build a 3 MTPA integrated plant on 700 acres of land in Madhya Pradesh. In its annual report, the company highlighted that it had purchased 184.53 hectares of limestone-bearing lands and 68.55 acres of land in Madhya Pradesh to set up a cement plant.

In addition, sources also indicated that India Cements is planning to sell its 1.5 MTPA cement plant in Banswara, Rajasthan, at a valuation of Rs 1,500 crore to Rs 2,000 crore. The sales proceeds will be used to cut long-term debt.

As of March 31, 2022, India Cements had net debt worth Rs 3,039.3 crore, according to its annual report.

While JSW Cement offered no comments on the story, CNBC Awaaz is yet to receive comments from India Cements, Birla Group, and the Adani Group.

First Published:Sept 30, 2022 11:56 AM IST