Shares of Jaiprakash Associates ended the day with nearly 18 per cent loss after promoter entity Jaypee Infra Ventures sold 1.3 crore shares in the company.
Stock of the company nosedived 17.60 per cent to settle at Rs 37.70 on the BSE. In intra-day session, it slumped 19.56 per cent to Rs 36.80.
At the NSE, the scrip fell sharply by 17.40 per cent to Rs 37.75.
Following the decline in the stock the company's market valuation dipped Rs 981.64 crore to Rs 9,170.36 crore.
As per data available on the stock exchanges, Jaypee Infra Ventures sold 1,34,89,693 shares of Jaiprakash Associates for Rs 62.40 crore through open market sale route.
Jaiprakash Associates today said "small share holding" disposed off by a promoter company was to meet needs of funds including for social cause.
"It is understood that rumours are being planted in the market by the persons with vested interests suggesting that the promoters are selling their share holding in the company. Such stories seem to have lead to a sharp drop in the share price...," the company said in a filing to the BSE.
"It is clarified in the interest of stakeholders that one of the promoters holding 72.36 crore shares, constituting 29.75 per cent of the company's shares capital, has sold only 1.45 per cent of such share holding and continues to hold 68.83 crore shares, constituting 28.30 per cent of company's share capital," it said.
"This small share holding has been disposed off by the promoter company to meet its requirement of funds including for social cause," Jaiprakash Associates added.
