Adani Group is in advanced talks to buy cash-strapped Jaypee Group’s cement assets, people familiar with the matter said. The development comes within a month after Adani completed India’s largest cement buyout by acquiring Holcim’s local units Ambuja Cements and ACC.

Housed in public companies Jaiprakash Associates Ltd (JAL) and Jaiprakash Power Ventures, Jaypee Group’s assets will help India’s richest man Gautam Adani strengthen his position in the sector. The deal is expected to be valued in the range of £3,298 million to £4,120 million ($400 million to $500 million), the above people said.

Jaiprakash Associates said in an exchange on Monday that its board has approved the sale of its cement business.

The Jaypee Group has a capacity of 10.55 mtpa

Jaiprakash Power Ventures Board of Directors has decided to sell its cement grinding plant in Nigrie, Madhya Pradesh. Jaypee Group currently has an installed cement capacity of 10.55 million tonnes per year (mtpa).

Bloomberg was the first to report the development on Monday. Ambuja Cements and ACC together have an installed production capacity of 67.5 mtpa. Aditya Birla Group’s UltraTech is a leader in the cement sector with an installed capacity of 119.95 mtpa.

Jaypee Group and Adani Group have not responded to inquiries. Some of the people cited above said Jaypee also reached out to JSW Cement but they declined. JSW declined to comment.

Adani Group plans to double its cement manufacturing capacity in the next five years through various initiatives aiming to become the top-ranked. “We expect capacity to increase from the current 70 million tons to 140 million tons in the next five years,” Chairman Gautam Adani said last month.

Jaiprakash Associates had debts of more than Rs 27,500 crore as of March 31st. “The company’s cash position is under pressure due to weak liquidity provisions amid large debt obligations,” Care Ratings said in a February note. “Due to the deterioration in the company’s financial condition over the past several years, the company’s cash position has remained weak, resulting in continued delays in debt servicing.”

Jaiprakash Associates lenders are keen to take the company to bankruptcy court, but management is attempting to sell assets to stave off bankruptcy proceedings. The stock rose 9.7% to close at Rs 11.74 while Jaiprakash Power rose 3.8% to Rs 8.46 on BSE Monday while the Sensex fell marginally.