Shares of Jaiprakash Associates dropped more than 8% today, following the opening of its foreign currency convertible bond issue (FCCB).
The shares were last seen trading at Rs 64.65, down 8.26% on the National Stock Exchange. Investors have over the last few quarters been worried over the staggering debt that Jaiprakash Associated has accumulated. With interest rates at elevated levels and over leveraged balance sheet is not in the company's interest.
The company has been trying to rope in foreign partners into its cement business to improve cash flow and reduce debt.
Jaiprakash Associates is part of the Jaypee Group, which is a Rs 15,000 crore diversified group with interests in real estate, cement, power, expressways, hospitality, sports and agribusinesses.