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Jaypee Infratech hit lower circuit of nearly 5 per cent on the BSE early on Thursday after The Economic Times reported that Lakshadweep Pvt, a joint venture with links to billionaire Dilip Shanghvi, is set to acquire the insolvency-hit developer.
Jaypee Infra, the operator of Taj Expressway, has to deliver nearly 25,000 apartments in Noida.
The scrip tumbled 4.92 per cent to Rs 8.51 at around 9.30 am.
Broader markets were trading on a cautious note ahead of the earning season for the March quarter starting from Friday.
The BSE Sensex was up only 15 points, or 0.05 per cent, at 33,955 at around the same time.
The proposed transaction by Lakshadweep, the JV between Suraksha Asset Reconstruction Company and Mumbai-based Dosti Realty, will result in the eventual delisting of Jaypee Infratech as almost all its equity capital will be written off.
The JV has beaten other leading contenders by a huge margin with a Rs 7,350 crore bid, according to the report.
Jaypee Infra has outstanding loans of about Rs 8,500 crore.
With the Lakshadweep offer, the banks may be able to recover over 80 per cent of their dues, said one of the lenders.
The stock had hit 52-week high of Rs 25.60 on January 8 and 52-week low of Rs 8.15 on April 2.
