Three Jaypee Group shares fell by 11.06% to 13.81% at 10:56 IST on BSE after Reliance Power on Wednesday, 24 September 2014, called off its discussions with Jaiprakash Power Ventures to buy three hydropower projects.
Jaiprakash Associates (down 13.81%), Jaiprakash Power Ventures (down 11.36%) and Jaypee Infratech (down 11.06%), edged lower.
The S&P BSE Sensex was down 91.81 points, or 0.34% at 26,652.88.
Jaiprakash Power Ventures (JPVL) announced that for reasons not attributable to any regulatory uncertainties but due to difference of commercial aspects, discussion with Reliance Power (RPower) has been called off.
JPVL has a generation base of 1700 MW Hydro power (1000 MW Karcham Wangtoo, 300 MW Baspa II, and 400 MW Vishnu Prayag) and 1160 MW thermal power, including 500 MW Bina thermal project and 660 MW Nigrie thermal power project. The company has been in discussions with Anil Dhirubhai Ambani Group (ADAG) for disinvestment of its Hydro power assets for the last two months, the company said in a statement.
Manoj Gaur, the Chairman Jaypee Group, said that the company was determined to take steps in the larger interest of the shareholders in the prevailing economic sentiment in the country.
Earlier this month, a foreign broker downgraded shares of Jaiprakash Associates to 'neutral' from 'buy' and removed the stock from the Asia Pacific 'buy' list on uncertainty after one of Jaiprakash Associates' promoters, holding 72.36 crore shares, constituting 29.75% of the company's share capital, sold 1.45% stake. He continues to hold 68.83 crore shares, or 28.30% of the share capital. This holding was disposed of by the promoter to meet its requirement of funds including for social cause.
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