JP Associates stock tumbles over 14% on buzz of stake sale

Shares of Jaiprakash Associates tumbled over 14 per cent today on concerns over reports that promoters are selling further stake in the company.
Stock of the company tanked 14.32 per cent to Rs 32.30 -- its 52-week low on the BSE.
On the NSE, it slumped 14.2 per cent to touch its one-year low of Rs 32.30.
Jaiprakash Associates' stock had fallen nearly 18 per cent yesterday.
Shares of other JP group companies also took a beating. Jaypee Infratech dropped 8.61 per cent while Jaiprakash Power Ventures was down 2.95 per cent on the BSE.
Jaiprakash Associates yesterday said "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.