Jaiprakash Associates slumps on high volume

Jaiprakash Associates tumbled 18.03% to Rs 37.50 at 15:18 IST on BSE, with the stock sliding on high volume after a promoter entity pared its stake in the company on Wednesday, 3 September 2014.

Meanwhile, the BSE Sensex was down 54.24 points, or 0.2%, to 27,085.70

The stock dropped on high volume. On BSE, so far 2.44 crore shares were traded in the counter, compared with an average volume of 31.85 lakh shares in the past one quarter.

The stock hit a high of Rs 45 and a low of Rs 36.80 so far during the day. The stock hit a 52-week high of Rs 89.85 on 11 June 2014. The stock hit a 52-week low of Rs 34 on 3 September 2013.

The stock had underperformed the market over the past one month till 2 September 2014, falling 23.17% compared with 6.04% rise in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 41.16% as against Sensex's 9.46% rise.

The large-cap company has an equity capital of Rs 486.49 crore. Face value per share is Rs 2.

Jaiprakash Associates during market hours today, 4 September 2014 clarified that one of the promoters holding 72.36 crore shares, constituting 29.75% of the company's shares capital, has sold only 1.45% of share holding and continues to hold 68.83 crore shares, constituting 28.30% of the company's share capital. This small share holding has been disposed off by the promoter company to meet its requirement of funds including for social cause, Jaiprakash Associates said.

The promoters of Jaiprakash Associates continue to have full faith in the company and hope that the investor/stakeholders would continue to have confidence in the company and its management, the company said. The company issued the clarification after rumors in the market that the promoters are selling their share holding in the company.

Meanwhile, bulk deal data on NSE showed that Jaypee Infra Ventures (a private company with unlimited liability) sold 1.34 crore shares at an average price of Rs 46.33 per share of Jaiprakash Associates on NSE on Wednesday, 3 September 2014.

Jaypee Infra Ventures owned 32.72% stake in Jaiprakash Associates (as per shareholding pattern as on 30 June 2014).

The board of Jaiprakash Associates at a meeting held on 25 August 2014 had approved selling the company's 1.5 MTPA cement grinding unit at Panipat, Haryana for a tentative consideration of around Rs 360 crore, subject to adjustments for net working capital and financial indebtedness taken over, as of the closing date of the transaction.

Jaiprakash Associates posted a net loss of Rs 80.61 crore in Q1 June 2014 compared with net profit Rs 334.51 crore in Q1 June 2013. Net sales fell 8.8% to Rs 2993.66 crore in Q1 June 2014 over Q1 June 2013.

Jaiprakash Associates is a diversified infrastructure conglomerate with business interests in engineering & construction, cement, power, real estate, expressways, fertilizer, hospitality, healthcare, sports, information technology and education (not-for-profit).

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