Shares of Jaiprakash group of companies today fell sharply by as much as 24.5 per cent after Reliance Power's talks to acquire Jaiprakash Power Ventures' three hydro power projects called off.
Jaiprakash Associates' stock tumbled 24.48 per cent to Rs 24.05 - its 52-week low on the BSE.
Similarly, shares of Jaiprakash Power Ventures Ltd dropped 17.94 per cent to hit its one-year low of Rs 11.20.
Shares of Reliance Power were also down by 5 per cent to Rs 72.05.
Analysts said these stocks saw massive selling pressure as this latest development will put further pressure on the group to cut its debt.
Reliance Power's talks to acquire Jaiprakash Power Ventures' three hydro power projects have been called off following lack of clarity over capacity of the Karcham Wangtoo project.
The two firms, who had been in talks for two months, announced the decision to call off talks in separate press statements but did not give detailed reasons for it.
Jaiprakash group (Japyee) was looking at selling the hydro projects to cut its huge debt burden.
Jaiprakash Power Ventures Ltd (JPVL) had said in a statement, "For reasons not attributable to any regulatory uncertainties but due to difference of commercial aspects, discussion with ADAG has been called off."
"The company was determined to take steps in the larger interest of the shareholders in the prevailing economic sentiment in the country," Jaypee Group Chairman Manoj Gaur had said in the statement.
