JP Associates tanks 8% on Gujarat HC notice

Moneycontrol Bureau 

Shares of JP Associates fell 8 percent in intraday trade on Friday on concerns that Gujarat High Court issued notice to Jaypee Cement and UltraTech Cement, based on a public interest litigation filed by local villagers.

The PIL allege that the cement factory in Kutch has encroached upon village land and is dumping waste in the area. The bench said that any deal between the two companies will be subject to the outcome of the PIL.

Aditya Birla group company UltraTech Cement is into a deal to acquire Jaypee Cement Corporation's (JCCL) Gujarat unit for Rs 3,800 crore.  The acquisition will be funded through equity of Rs 150 crore, debt worth Rs 2,000 crore and the remainder of Rs 1,650 crore through internal accruals.

At 13:50 hrs Jaiprakash Associates was quoting at Rs 39.45, down Rs 2.95, or 6.96 percent on the BSE.