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Jindal Steel & Power Ltd (JSPL), the country's third-largest steel maker by value, headed for the biggest decline in five-and-a-half-years in Mumbai, as the Central Bureau of Investigation (CBI), the nation's top investigating agency, registered a case related to allocation of coal blocks against the company and its owner, Naveen Jindal.
In intra-day trade, the scrip fell as much as 24.30 per cent to Rs 202 - its 52-week low - before recovering to Rs 226, down 15.18 per cent from its previous close on the BSE.At the NSE, the stock dived by 15.25 per cent to Rs 226.50.
The stock has fallen 51 per cent this year, compared with a 1.4 per cent decline in the benchmark S&P BSE Sensex.
Investigations are being carried out in several offices of Jindal Steel, including its New Delhi headquarters, as well as Naveen Jindal's residence in the capital, CBI spokeswoman Dharini Mishra said on Tuesday in a text message. "This is an ongoing CBI investigation into coal block allocation" Manu Kapoor, the head of external affairs at Jindal Steel, said in an emailed statement. "At this stage of the investigation, JSPL is committed to fully cooperate with the CBI."
The CBI is probing companies after the nation's auditor in August said the allocation of coal mines without an auction had cost the government Rs 1.86 lakh crore ($32 billion). The Comptroller & Auditor General of India said the award of the mines gave undue benefit to companies, including Jindal Steel.
Jindal, a Congress MP, couldn't be immediately reached on his cellphone or his landline phones.
