Shares of Jaiprakash Power Ventures tanked over 7 per cent today after the company said that Abu Dhabi-based TAQA is withdrawing from the agreement to purchase two hydropower plants owned by the company in Himachal Pradesh.
The company's stock settled with a loss of 7.02 per cent at Rs 19.20 on the BSE. During the day, it fell by 8.23 per cent to Rs 18.95.
At the NSE, the stock plunged 7.25 per cent to end at Rs 19.20.
Jaiprakash Power Ventures in a filing to the BSE said it received a notice from TAQA India Power Ventures (TAQA) informing that they will be withdrawing from the acquisition transactions as defined in the acquisition agreement dated 1 March 2014 entered between Jaiprakash Power Ventures and TAQA India Power Ventures and others.
TAQA stated that they have been constrained to take the said decision as a result of a change in the business strategy and priorities of their group.
Jaiprakash Power said that such withdrawal makes TAQA liable to payment of a break fee in terms of the said acquisition agreement.
Abu Dhabi National Energy Company (TAQA) led consortium had in March this year announced that it will acquire Jaiprakash Power Ventures' two hydroelectric power plants for about Rs 10,000 crore (USD 1.6 billion).
Jaiprakash Power Ventures Ltd is a subsidiary of Indian infrastructure conglomerate Jaypee Group.