Jaiprakash denies repayment default rumour after shares fall

Shares of the parent company plunged as much as 32%

Infrastructure firm Jaiprakash Associates Ltd said a sharp plunge in the share price of group companies on Wednesday was not related to the performance of the company or any action from its lenders.

The company said it "categorically denied" rumours related to a share revocation and defaults in repayment obligations, which caused shares in the parent company to plunge as much as 32%.

Shares were trading down 21% at Rs 13 at 2:50 p.m. on Wednesday after falling to as low as Rs 11.15 earlier in the day.

Jaiprakash Power Ventures Ltd shares fell as much as 25%.

Jaiprakash has been selling assets in recent quarters to cut its heavy debt load and improve balance sheet.

 

The group has initiated steps for disinvestment of assets of over Rs 22,000 crore ($3.44 billion) which are on track to be completed by September, the company said in the statement.

($1 = 64.0100 rupees)