 "Coal block verdict impact: JSPL hits 5-year low, Coal India up 5%")
Jindal Steel and Power (JSPL) has dipped 15% to Rs 180, its lowest level since March 2009 on the National Stock Exchange (NSE), after the Supreme Court today cancelled all coal block allocations except for government-run blocks that operate on a non-JV (joint venture) basis.
A penalty of Rs 295/tonne will also be imposed on all cancelled block holders, the Supreme Court order says.
A penalty of Rs 295/tonne will also be imposed on all cancelled block holders, the Supreme Court order says.
The stock opened at Rs 207 and touched a high of Rs 218 in early morning deals on NSE. A combined 21.42 million shares changed hands on the counter so far on NSE and BSE.
For JSPL, the SC ruling not only creates uncertainty on profitability from existing operational coal blocks (Gare Palma IV/I /2/3) but also on the profitability of the US$2.6 billion investment in the Angul Steel & Power project as the associated Utkal B1 block is unlikely to be allocated now, says Chirag Shah, metals, mining & materials analyst Barclays in recent report.
Among the other individual stocks related to coal blocks such as Usha Martin down 12% at Rs 29.45 followed by GMR Infra (down 11% to Rs 19.45),Jayaswal Neco (8% at Rs 13.80) and Prakash Industries (7% at Rs 61.50). Meanwhile, Coal India has rallied 5% to Rs 352 on NSE.
For JSPL, the SC ruling not only creates uncertainty on profitability from existing operational coal blocks (Gare Palma IV/I /2/3) but also on the profitability of the US$2.6 billion investment in the Angul Steel & Power project as the associated Utkal B1 block is unlikely to be allocated now, says Chirag Shah, metals, mining & materials analyst Barclays in recent report.
Among the other individual stocks related to coal blocks such as Usha Martin down 12% at Rs 29.45 followed by GMR Infra (down 11% to Rs 19.45),Jayaswal Neco (8% at Rs 13.80) and Prakash Industries (7% at Rs 61.50). Meanwhile, Coal India has rallied 5% to Rs 352 on NSE.