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Jindal Steel tanks on reports of probe panel setup for coal mine allocation

Meanwhile, the board has approved buy-back of equity shares at price not exceeding Rs 261 per equity share

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SI Reporter Mumbai
Last Updated : Aug 30 2013 | 12:58 PM IST
Jindal Steel and Power (JSPL) has tanked nearly 12% at Rs 214 in noon deal trades on BSE, on report that the Coal Ministry has set up a probe panel to review the status of Naveen Jindal-promoted company’s two coal blocks in Chhattisgarh.

The coal ministry has formed an inter-ministerial committee headed by Advisor coal and comprising members from power and steel ministries to probe misuse of coal by JSPL from its blocks in Chhattisgarh, the Economic Times report suggests.

The probe has been initiated after complaints from several sections of the society alleging illegal sale of coal in Chhattisgarh by the group, added report.

Meanwhile, the board of directors of the company has approved the buy-back of equity shares from its existing shareholders, other than the Company's promoters, promoter group, persons in control and persons acting in concert, at a price not exceeding Rs 261 per equity share, up to an aggregate amount not exceeding Rs 1,000 crore from the open market through the stock exchanges.

The buy-back shall be equal to or less than 10% of the company's total paid-up equity capital and free reserves, it added.

The stock opened at Rs 243 and touched high of Rs 247 on BSE. A combined 3.38 million shares change hands on the counter till noon deals on BSE and NSE.

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First Published: Aug 30 2013 | 12:40 PM IST

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