The board of Duncans Industries, the flagship company of the Duncan-Goenka group, on Thursday approved inducting Jaypee Associates as a strategic partner for its closed fertiliser unit in Kanpur.
“The board has approved Jaypee Associates as a strategic partner for the fertiliser unit,” said G.P. Goenka, chairman, Goenka group.
The company’s shares hit a year-high at Rs 20, up 18.8 per cent on the BSE. It closed at Rs 20, up 20 per cent on the NSE.
Jaypee would pick up 50 per cent stake in the unit while the rest would be held by Duncans.
A joint venture would be formed for the fertiliser unit, Goenka said.
Jaypee would also shoulder the liabilities of the unit, which totalled Rs 550 crore.
The new venture would also repay the fixed depositors of Duncans, Goenka said. “It is a win-win situation for both.”
The joint venture would be formed once the Board for Industrial and Financial Reconstruction (BIFR) approves the draft rehabilitation scheme for Duncans.
Post this, Duncans would be engaged only in tea business.