Jai Corp tanks 19% on heavy volumes, nears 52-wk low; down 37% in 1 month

Urban Infrastructure Holdings, a company in which Jai Corp holds 32 per cent, is convening an extraordinary general meeting to approve a capital reduction proposed by the company

Jai Corp share price: Jai Corp shares tanked 19 per cent to Rs 252 on the BSE in Thursday’s intra-day trade amid heavy volumes after the company informed the stock exchange that Urban Infrastructure Holdings Pvt. Ltd. (UIHPL), a company in which it holds a 32 per cent stake, is convening an extraordinary general meeting of shareholders to approve capital reduction proposed by the company.

 

The proposed capital reduction is subject to approval by the shareholders of UIHPL, the National Company Law Tribunal (NCLT), apart from the other requisite regulatory approvals. Upon sanction of the capital reduction proposal, the company will receive approximately Rs 364 crore, the Anand Jain-promoted Jai Corp said in an exchange filing.

 

At 10:41 AM, Jai Corp shares were quoting 18 per cent lower at Rs 252.85, as compared to the 0.6 per cent rise in the BSE Sensex. The average trading volumes on the counter had jumped many times over, with a combined 11.34 million equity shares, representing 6.4 per cent of the total equity of the company, changing hands on the NSE and BSE. 

 

Within one month, the company's stock price has corrected 37 per cent from the level of Rs 401 that it hit on December 5, 2024. It had hit a 52-week high of Rs 438 on July 2, 2024. The stock is trading close to its 52-week low of Rs 250 that it had hit on March 14, 2024.

 

In September 2024, the company had bought back 2.94 million equity shares, through the tender offer route on a proportionate basis at Rs 400 per equity share. The promoter and promoter group had tendered 1.95 million equity shares, or 1.09 per cent of their stake, during the buyback offer made by Jai Corp, the company said in an exchange filing.

 

Meanwhile, Jai Corp on Monday, January 1, 2024, in an exchange filing, said Dronagiri Infrastructure Private Limited (DIPL), a subsidiary of UIHPL, has recently sold its 74 per cent equity stake in Navi Mumbai IIA Private Limited (NMIIA) for a consideration of Rs 1,628.03 crore.

 

Reliance Industries on December 13, 2024 had announced the acquisition of a 74 per cent equity stake in NMIIA for Rs 1,628.03 crore. CLICK HERE FOR FULL RELEASE

 

UIHPL has received a notice convening an Extra-ordinary General Meeting of the members of DIPL, proposing a reduction of its equity share capital, since DIPL has funds in excess of its wants. Upon such reduction, UIHPL will receive a minimum amount of Rs 1,492.50 crore from DIPL as consideration for the DIPL Capital Reduction. 

 

As per the DIPL EGM Notice, this amount may increase depending on interest which may be earned by DIPL on the surplus cash available with it and which may also be distributed by DIPL as consideration for DIPL Capital Reduction. Further, UIHPL has already received back the promoter’s contribution towards equity to the subsidiary company of Rs 1,597 crore from DIPL, the company said. CLICK HERE FOR FULL RELEASE