Jaypee Group shares tank up to 19% as RPower deal called off

Shares of Jaiprakash group of companies today fell sharply by as much as 19.15 per cent after Reliance Power's talks to acquire Jaiprakash Power Ventures' three hydro power projects got called off.
Jaiprakash Associates' stock nosedived 19.15 per cent to settle at Rs 25.75. During the day, it slumped 24.48 per cent to Rs 24.05 -- its 52-week low.
Shares of Jaiprakash Power Ventures Ltd tanked 13.92 per cent to end at Rs 11.75 after earlier hitting its one-year low of Rs 11.20 in intra-day.
Similarly, Jaypee Infratech dipped 13.45 per cent to Rs 19.95.
The group's cumulative market valuation dropped by Rs 1,791.35 crore to Rs 12,486.65 crore.

Analysts said these stocks saw massive selling pressure as this latest development will put further pressure on the group to cut its debt.

Reliance Power's talks to acquire Jaiprakash Power Ventures' three hydro power projects have been called off following lack of clarity over capacity of the Karcham Wangtoo project.
The two firms, who had been in talks for two months, announced the decision to call off talks in separate press statements but did not give detailed reasons for it.
Jaiprakash group (Japyee) was looking at selling the hydro projects to cut its huge debt burden.
Jaiprakash Power Ventures Ltd (JPVL) had said in a statement, "For reasons not attributable to any regulatory uncertainties but due to difference of commercial aspects, discussion with ADAG has been called off."

"The company was determined to take steps in the larger interest of the shareholders in the prevailing economic sentiment in the country," Jaypee Group Chairman Manoj Gaur had said in the statement.