Thu Jan 02 08:30:00 UTC 2025: ## Jai Corp Shares Plummet After UIHPL Announces Capital Reduction
**Mumbai, India** – Shares of Jai Corp Ltd. experienced a significant 19% drop on Thursday following the announcement that its subsidiary, Urban Infrastructure Holdings Private Limited (UIHPL), is proposing a substantial capital reduction. The move comes on the heels of UIHPL’s subsidiary, Dronagiri Infrastructure Private Limited, selling a 74% stake in Navi Mumbai IIA Private Limited to Reliance Industries Ltd (RIL) for Rs 1,628.03 crore.
The capital reduction in UIHPL, subject to shareholder, NCLT, and regulatory approvals, is expected to yield Jai Corp approximately Rs 364 crore. UIHPL will receive a minimum of Rs 3,772 crore through this reduction and the redemption of debentures, significantly boosting its cash reserves. This includes Rs 1,492.50 crore from Dronagiri, plus interest, and Rs 682 crore from the redemption of debentures in Vinamra Universal Traders Private Limited.
The sale to RIL involved a large industrial land parcel in Navi Mumbai, reportedly valued at Rs 2,200 crore, sparking some market concern. While the transaction provided a substantial sum to UIHPL, the subsequent capital reduction and share price drop indicate investor uncertainty surrounding the strategic implications of these financial maneuvers. Jai Corp’s shares fell to a low of Rs 252.35 on the BSE, continuing a downward trend from the previous two days. The company stated that the capital reduction at UIHPL is due to excess funds beyond its operational needs.
First Piper 