Jaiprakash denies repayment default rumour after shares fall

MUMBAI (Reuters) - 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 percent.

Shares ended down 20.67 percent at 13.05 rupees on Wednesday after falling to as low as 11.15 rupees earlier in the day.

Jaiprakash Power Ventures Ltd shares closed 7.8 percent lower after falling as much as 24.8 percent.

 

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 220 billion rupees ($3.44 billion) which are on track to be completed by September, the company said in the statement.

($1 = 64.0100 rupees)

(Reporting by Aman Shah in Mumbai; Editing by Biju Dwarakanath)