Scotching speculation suggesting that its promoters are diluting stake which resulted in nearly 19 per cent dip in its share prices, Jaiprakash Associates Ltd 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.
Shares of the company slumped 18.47 during late afternoon trade on the bourses after a promoter entity Jaypee Infra Ventures sold a large number of shares in the company earlier in the day in the bourses through open markets.
"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.
The company said "..the promoters of Jaiprakash Associates continue to have full faith in the company and hope that the investor/stakeholders would continue to have confidence in the company and its management as hitherto".