Jai Corp Shares Tumble Over 35% In Two Days After Land Parcel Sale To Reliance

Shares of Jai Corp. plunged more than 16% on Friday — for the second consecutive session — after an over 5,286-acre industrial land parcel was sold to Reliance Industries Ltd. for a valuation of Rs 2,200 crore. The stock has fallen over 35% in two days.

Urban Infrastructure Holdings Pvt. Ltd., in which Jai Corp. holds a 32% stake, held an extraordinary general meeting of shareholders to approve a capital reduction plan.

The subsidiary of Urban Infrastructure Holdings sold its 74% stake in Navi Mumbai IIA Pvt. for Rs 1,628.03 crore, setting the company's valuation at Rs 2,200 crore, to Reliance Industries Ltd.

Reliance Industries clarified that this transaction is not a related-party deal, and none of its promoters, their group, or group companies are involved. As a result of this acquisition, Navi Mumbai IIA became a 74% subsidiary of the Mukesh Ambani-led conglomerate.

Navi Mumbai IIA was founded on June 15, 2004, and is focused on developing integrated industrial area in Maharashtra. In the financial year ending March 2018, the Maharashtra government approved the conversion of the project from a special economic zone into an integrated industrial area.

The scrip fell as much as 16.45% to Rs 207.55 apiece. It pared losses to trade 13.04% lower at Rs 216 apiece, as of 10:09 a.m. This compares to a 0.26% decline in the NSE Nifty 50 Index.

It has fallen 45.51% in the last twelve months. Total traded volume so far in the day stood at 15 times its 30-day average. The relative strength index was at 20.76.