Thu Jan 02 08:30:00 UTC 2025: ## Jai Corp Shares Plunge 20% on Capital Reduction Plan at Subsidiary
**Mumbai, [Date]** – Shares of Jai Corp Ltd experienced a dramatic 20% drop today, reaching Rs 250 by 11:32 AM, following the announcement of a significant capital reduction plan at its subsidiary, Urban Infrastructure Holdings Private Limited (UIHPL). The company holds a 32% stake in UIHPL.
The capital reduction, which requires approval from an extraordinary general meeting (EGM), the National Company Law Tribunal (NCLT), and other regulatory bodies, is expected to generate approximately Rs 364 crore for Jai Corp.
This announcement comes on the heels of UIHPL subsidiary, Dronagiri Infrastructure Private Limited (DIPL), selling a 74% stake in Navi Mumbai IIA Private Limited to Reliance Industries Ltd (RIL) for Rs 1,628.03 crore. This deal followed CIDCO’s waiver of its right of first refusal.
The capital reduction at UIHPL will see 99.76% of its share capital returned to shareholders, totaling a minimum of Rs 3,746.87 crore. This includes funds from DIPL (minimum Rs 1,492.50 crore, potentially higher with interest) and the redemption of optionally fully convertible debentures in Vinamra Universal Traders Private Limited (Rs 682 crore).
Investor concerns surrounding this restructuring have led to a significant decline in Jai Corp’s share price, with a nearly 27% drop over the past three trading sessions. The market’s reaction reflects uncertainty surrounding the long-term implications of these significant corporate changes.
First Piper 