Jaiprakash Associates tumbles 11 pct, Jaypee Infratech slips over 7 pct

Written by PTI | Mumbai | Updated: Sep 6 2014, 01:09am hrs
Jaiprakash AssociatesJaiprakash Associates' counter plunged 10.34 per cent to settle the day at Rs 33.80 on the BSE. AP
Shares of Jaiprakash Associates tanked 11 per cent today, after plunging 18 per cent a day ago, on concerns related to promoter entity Jaypee Infra Ventures selling 1.3 crore shares in the company.

Jaiprakash Associates' counter plunged 10.34 per cent to settle the day at Rs 33.80 on the BSE. During the day, it tumbled 14.32 per cent to Rs 32.30. At the NSE, it was down 11.02 per cent to end the day at Rs 33.50.

Jaiprakash Associates' stock had fallen nearly 18 per cent yesterday.

Shares of other JP group companies also took a beating. Jaypee Infratech dropped 7.23 per cent while Jaiprakash Power Ventures remained unchanged at the BSE.

Over the past four sessions, Jaiprakash Associates has fallen nearly 30 per cent and lost Rs 2,473.3 crore to Rs 8,221.70 crore in market-capitalisation.

Brokers said after Jaypee Infra Ventures sold 1,34,89,693 shares of Jaiprakash Associates for Rs 62.40 crore through the open market route, investors have been worried.

Jaiprakash Associates, however, yesterday said the "small shareholding" disposed of by a promoter company was to meet needs of funds including for social cause.

"It is understood that rumours are being planted in the market by the persons with vested interests suggesting that the promoters are selling their shareholding in the company. Such stories seem to have lead to a sharp drop in the share price...," the company had said in a filing to the BSE.

"It is clarified in the interest of stakeholders that one of the promoters holding 72.36 crore shares, constituting 29.75 per cent of the company's shares capital, has sold only 1.45 per cent of such shareholding and continues to hold 68.83 crore shares, constituting 28.30 per cent of company's share capital," it had said.