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JSPL crashes to 52-week low as CBI reportedly files FIR

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Capital Market
Last Updated : Jun 11 2013 | 11:30 AM IST

Meanwhile, the S&P BSE Sensex was down 187.65 points or 0.97% at 19,253.42.

On BSE, 19.37 lakh shares were traded in the counter as against average daily volume of 2.42 lakh shares in the past one quarter.

The stock hit a 52-week low of Rs 202 in intraday trade today, 11 June 2013. The stock hit a high of Rs 266.70 so far during the day. The stock had hit a 52-week high of Rs 480 on 5 July 2012.

The stock underperformed the market over the past one month till 10 June 2013, falling 14.4% compared with the Sensex's 3.19% decline. The scrip also underperformed the market in past one quarter, sliding 27.34% as against Sensex's 1.23% fall.

The large-cap company has equity capital of Rs 93.48 crore. Face value per share is Re 1.

As per reports, the CBI has filed an FIR against the Jindal group firm and began searches at around 19 locations as part of its probe into allegations of corruption in the allocation of coal blocks. The raids were underway in about 19 locations like Delhi, Hyderabad and Kolkata which also includes Jindal's home in Delhi.

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Shares of Jindal Steel and Power (JSPL) have been on a declining spree recently on reports the Coal Ministry has on 7 June 2013 issued show cause notices to 11 firms, including JSPL, for not developing the mines allotted to them. The ministry has allowed JSPL a period of 20 days to respond to the show cause notice failing which the coal block would stand de-allocated, reports added. The stock fell 25.91% in four trading sessions from a recent high of Rs 287.35 on 5 June 2013.

The maximum number of notices were issued to the Jindal group led by Congress MP Naveen Jindal, which was allocated a total of 11 blocks, reports added.

The crackdown is part of the government's exercise to ensure that the allocated blocks do not remain unproductive for long. The Government has already de-allocated coal blocks in 22 cases and bank guarantees have been forfeited in case of another 36 entities.

Last year government auditor CAG, in a report, had estimated likely financial gains to the tune of Rs 1.86 lakh crore to accrue to private coal block allocattees without auction.

JSPL's consolidated net profit declined 34.9% to Rs 760.23 crore on 2.2% growth in net sales to Rs 5583.33 crore in Q4 March 2013 over Q4 March 2012.

JSPL is one of India's major steel producers with a significant presence in sectors like mining, power generation and infrastructure.

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First Published: Jun 11 2013 | 11:17 AM IST

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