Jaiprakash Associates plunges 7% on block deal

Shares of Jaiprakash Associates fell nearly 7 per cent in Tuesday’s trade amid reports that 25.9 crore company shares got changed hands in a block at Rs 20.65 per share. NSEBSEJaypee InfratechLoading data…

PEER COMPANIES NEW DELHI: Shares of Jaiprakash Associates fell nearly 7 per cent in Tuesday’s trade amid reports that 25.9 crore company shares got changed hands in a block at Rs 20.65 per share.

Following the development, the stock fell 6.63 per cent to hit a low of Rs 20.40 on NSE.

The report emerged a day after Supreme Court lifted a stay on insolvency resolution proceedings against Jaypee Infratech and ordered its parent, Jaiprakash Associates, to deposit Rs 2,000 crore with the court by October 27 to cover the unit’s liabilities towards homebuyers in its residential projects. It also asked the insolvency professional to draw up a resolution plan for the company within 45 days, which should take care also of the interests of the homebuyers.

Besides, the court prevented Jaypee Infratech from alienating any assets or creating third-party rights. The directors of both companies cannot travel abroad without the court’s permission, ET reported.

Monday’s order will allow resumption of insolvency resolution proceedings against Jaypee Infratech at the National Company Law Tribunal, initiated by IDBI Bank over a Rs 526 crore loan it defaulted, the report said.

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