Jindal Steel loses Rs 3,787cr in market valuation; shares drop over 15%
Mumbai: Shares of Jindal Steel and Power Tuesday plunged over 15 percent, wiping Rs 3,787 crore from its market valuation, as CBI named the company and its promoter Naveen Jindal as accused in its fresh FIR in the coal scam.
After slumping 24.3 percent to Rs 202 -- its 52-week low in intra-day trade -- the stock finally ended at Rs 226.35, down 15.18 percent from its previous close on the BSE.
At the NSE, the stock nosedived by 15.25 percent to Rs 226.50.
The scrip was the top loser on both the key indices -- Sensex and Nifty.
Following the slump in the stock, the market valuation of the company tanked by Rs 3,787 crore to Rs 21,159 crore.
"The investigation into the company by CBI over coal block allocation did not go well with the investors. The stock was dumped heavily," said Nagji K Rita, Chairman & MD, Inventure Growth & Securities.
Congress MP Naveen Jindal and former Minister of State for Coal Dasari Narayan Rao have been accused of alleged cheating and graft by CBI in its fresh FIR in the coal scam.
Besides Jindal and Rao, CBI has also booked companies Jindal Steel and Power Limited and Gagan Sponge which were allotted Amarkonda Murgadangal coal block in Birbhum, Jharkhand in the year 2008.
Reacting to the development, Head of External Affairs, Jindal Steel and Power, Manu Kapoor said, "JSPL, as a law abiding company, is governed by a strong ethical code of conduct. This is an ongoing CBI investigation into coal block allocation. At this stage of investigation, JSPL is committed to fully cooperate with CBI."
Meanwhile, in the stock market, the BSE benchmark Sensex ended the day at 19,143, down 298.07 points or 1.53 percent.