Stock price of NCC dives on speculation that its JV projects with Maytas Infra

DELHI: The stock price of Nagarjuna Construction Company (NCC) plummeted by 23% on talk that the company may run into trouble over its joint venture projects with Maytas Infra and Maytas Properties.

The scrip was trading at Rs 55.20 as on 12.30 pm on the BSE. NCC has four joint ventures with Maytas Infra and Maytas properties for their port, metro rail, airport and housing projects.

Now, the rumour is non of these projects may not take off due to the Satyam imbroglio. In all these projects NCC has over 30 % stake. The AP government is also considering to replace Maytas Infra consortium in the metro railway project. Big bull Rakesh Jhunjhunwala with close to 7% stake is one of the prominent investors in this stock, as per the September 30, shareholding pattern on the BSE.