Jaiprakash Associates drops after closure of QIP

Jaiprakash Associates lost 0.48% to Rs 73 at 9:17 IST on BSE after the company said it has approved the issue of approximately Rs 1500 crore to qualified institutional buyers at a price of Rs 70.27 per share.

The announcement was made before market hours today, 8 July 2014.

Meanwhile, the S&P BSE Sensex was up 64.01 points or 0.25% at 26,164.09.

On BSE, so far 41,000 shares were traded in the counter as against average daily volume of 22.77 lakh shares in the past two weeks.

The stock hit a high of Rs 73.60 and a low of Rs 72.80 so far during the day.

Jaiprakash Associates said that the Finance Committee of the board of directors of the company in its meeting on Monday, 7 July 2014 decided to close the bid period of qualified institutional placement (QIP) of shares to qualified institutional buyers (QIB), and approved the issue size at $250 million (approximately Rs 1500 crore) at a price of Rs 70.27 per share (including a premium of Rs 68.27 per share). The floor price for QIP was fixed at Rs 70.27 per share after 5% discount. The QIP issue opened on 2 July 2014.

Jaiprakash Associates' net profit fell 18.7% to Rs 100.42 crore on 11.9% decline in net sales to Rs 3402.61 crore in Q4 March 2014 over Q4 March 2013.

Jaiprakash Associates is a diversified company with business interest in construction, power, cement, real estate and hospitality.

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