Shares of Jaiprakash (JP) Associates fell more than 4 per cent in Thursday’s intraday deals as the company didn’t disclose any further details about its intention to divest cement business. The stock cracked 4.14 per cent to trade at Rs 11.35 during in morning deals today. It declined as much as 5.24 per cent to hit a day’s low of Rs 11.22 on BSE.
JP Associates shares have seen wild fluctuations for the past few days after the company decided to divest its cement business.
The stock touched its 52-week high — at Rs 13.10 — in Tuesday’s intraday deals this week.
On October 10, the company, in an exchange filing, said, “With a view to give thrust to the ongoing efforts of the company to reduce its debt, the board of directors in their meeting have, inter-alia, decided to divest company’s significant cement business.”
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Subsequently, the exchanges asked for clarification from JP Associates after a news report claimed that Adani Group has apparently shown interest in Jaypee’s cement business.
Jaypee Group’s listed companies include Jaiprakash Associates and Jaiprakash Power Ventures.
Without giving any further details about the divestment plan, JP Associates today said, “The company shall report any further material information/events as and when the same crystallizes.” It doesn’t comment on market speculations, JP Associates added.
Meanwhile, Adani Group has recently completed the acquisition of Ambuja Cements and ACC Ltd — from Swiss major Holcim — to become the country’s second largest cement player.
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Adani Group currently owns around 63 per cent of Ambuja Cements and 57 per cent of ACC.