The steep fall in share price forced Jaiprakash Associates to withdraw its offer-for-sale of equity shares of Jaypee Infratech that was scheduled to open for subscription on Thursday.
The stock of Jaypee Infratech fell 8.65 per cent to close at Rs 48.55 on the BSE.
“In view of today's unusual fall in the share price of Jaypee Infratech Ltd, post announcement of OFS, Jaiprakash Associates Ltd has decided to defer the said offer-for-sale,” it informed the exchanges.
The company disclosed the information to the exchanges at 8.30 p.m. on Wednesday.
Earlier, Jaiprakash Associates planned to conduct OFS for 2.78 crore equity shares of Jaypee Infratech, with an option for additional 7.06 crore shares. The sale was being undertaken to meet the SEBI’s minimum public shareholding norm. JP Associates currently holds 83.1 per cent in Jaypee Infratech.