JP Associates at 9.6-year low, delays repayment of FDs

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Moneycontrol Bureau

Shares of Jaiprakash Associates fell as much as 8.3 percent intraday to touch a 9.6-year low of Rs 23.10 on Tuesday as sources told CNBC-TV18 that the debt-laden company delayed repayment of fixed deposits to its investors.

In some cases, JP Associates withheld principal amounts of fixed deposits, say sources. The company had launched FD scheme in 2012 for tenure of 1, 2, 3 years.

Meanwhile, JPA has been struggling under huge debt. It has a net debt of more than Rs 60,000 crore and to reduce the same debt, the company has been trying to dispose some of its assets.

In the quarter ended September 2014, JPA had reported a loss of Rs 106.5 crore compared to profit of Rs 67.67 crore in the year-ago period and loss of Rs 80.61 crore in June quarter, 2014.

At 12:02 hours IST, the stock was quoting at Rs 23.60, down Rs 1.60, or 6.35 percent on the BSE.