JP Associates shares slip on deferring OFS in Jaypee Infra

Engineering and construction company Jaiprakash Associates fell more than 2 percent in early trade on Thursday as it deferred a planned sale of shares in its unit Jaypee Infratech. Share prices of the subsidiary fell 8.5 percent on Wednesday, the parent company said.

"In view of today's unusual fall in the share price of Jaypee Infratech ... Jaiprakash Associates Ltd has decided to defer the said offer for sale," the company said in a statement late on Wednesday.

Jaiprakash Infratech, which builds roads and homes primarily in the north Indian state of Uttar Pradesh, had planned to sell 98.5 million shares on Thursday to raise up to USD 94 million to meet the market regulator's guidelines on minimum public shareholding.

On Tuesday, Jaiprakash Associates, which owns about 83 percent of Jaypee Infratech, had said it would sell 27.9 million shares to institutional investors with an option to increase it by another 70.6 million.

Shares of Jaiprakash Associates dropped 2.39 percent to Rs 85.60 while Jaypee Infratech gained 3.19 percent to Rs 50.10 on Bombay Stock Exchange at 09:37 hours IST.

(With inputs from Reuters)