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Kolkata, Nov. 11 Bear Sterns Asset Management on Tuesday exited Jaiprakash Associates. It sold its holding of around 1.97 crore shares for Rs 87.25 a share to Copthall Mauritius Investments, a registered FII.

Bear Sterns had entered the counter in March 2007. The sell price was less than Tuesday’s weighted average of Rs 87.55. The Rs-2 stock finished at Rs 84.85, down 21.21 per cent.

According to Emkay Securities, Jaiprakash Associate’s second quarter net profit was sharply above brokerage’s expectation. Higher revenue booking and margins in the construction division and higher dividend from its subsidiary Jaiprakash Power Ventures Ltd boosted bottom line.

The top line for the quarter recorded a growth of 37 per cent year-on-year, driven by 14 per cent growth in revenues of cement division and 52 per cent growth in revenues of construction division.

Under the pressure of mounting coal and other raw material prices, the cement division reported an EBIT decline of 3.2 per cent as its EBIT margins declined 590 bps to 25.2 per cent.

Construction division reported 136 per cent growth in its EBIT on the back of 1100 basis points expansion in its EBIT margin.

Interest and depreciation charges for the quarter grew by 20 per cent and 45 per cent, respectively, as the company commissioned cement unit at Dalla & Chunar.

According to Dolat Capital, estimated dearth of cash flow for Jaiprakash Associates in FY10 to service FCCB. The increase in loan liability on account of outstanding FCCBs is at 79 per cent and the market price of the stock has fallen substantially during this year.

JPA’s board has approved a rights issue of Rs 1,800 crore and have dropped plans of allotting warrants to Jaypee Ventures (a promoter group company) on preferential basis. Promoters had subscribed to 1 crore warrants out of the five crore warrants issued to them on January at Rs 397 a warrant.

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