Shares of Jaypee Group companies Jaiprakash Associates Ltd (JAL) and Jaiprakash Power Ventures Ltd (JPVL) crashed on Thursday as investors panicked over one of the promoter entities diluting its stake in JAL.

While JAL’s shares closed 17.60 per cent lower at ₹37.70 on the BSE, Jaiprakash Power closed 5.9 per cent lower at ₹13.55. According to information available on the BSE website, Jaypee Infra Ventures’ holding in JAL has come down from 32.72 per cent on June 30 to 28.30 per cent on September 4.

The buzz in the market was that the promoters were not serious about the business. However, JAL said in a statement that the rumours were being planted by persons with vested interests.

JAL informed the stock exchange that one of the promoter companies, Jaypee Infra Ventures, had sold 3.52 crore shares, around 1.45 per cent of its holding, for ₹166.56 crore in three separate tranches over the past three days. “It is clarified in the interest of stakeholders that one of the promoters, holding 72.36 crore shares constituting 29.75 per cent, has sold only 1.45 per cent of such shareholding,” the statement said.

JAL asserted that the promoters of Jaiprakash Associates continue to have faith in the company and hoped that investors/stakeholders would continue to have confidence in the company.

The Jaypee group has a debt of around ₹56,000 crore, although some brokerage firms such as Credit Suisse estimate group-level debt to be as high as ₹64,000 crore.

DLF shares take a hit

Real estate developer DLF Ltd’s shares fell 8.60 per cent to close at ₹167.30 on the BSE on Thursday after the Punjab and Haryana High Court set aside a Haryana Government decision to allot 350 acres in Wazirabad, Gurgaon, to the realty major.

A Division Bench on Wednesday directed the Haryana Government to conduct an auction of the land, while allowing DLF to participate in it.

The company clarified that the is for “an independent project and has no correlation with any of the ongoing, existing or completed projects, including DLF 5.”