Shares of Jaiprakash Associates Ltd fell more than 9 percent on Wednesday, with traders citing rising concerns about net debt levels, a day after the cement maker raised $150 million in foreign currency convertible bonds (FCCB).
Jaiprakash's consolidated net debt levels had increased to 503 billion rupees from 375 billion rupees as of the end of fiscal 2011, Goldman Sachs said, citing its annual report.
"In our view, monetization of assets would be key in meeting funding requirements of the business," Goldman said in a note dated August 29, reiterating its "sell" rating on the stock.
Jaiprakash on Wednesday said it had raised $150 million via a five-year and one-day FCCB with a 5.75 percent semi-annual coupon and a conversion price of 77.50 rupees, a 10 percent premium to its closing price on Wednesday.
Jaiprakash shares were last down 8.2 percent at 64.65 rupees. They earlier touched a low of 64.10 rupees.