Jindal Steel & Power fell 4.36% to Rs 233.40 at 14:29 IST on BSE, with the stock extending recent slump triggered by the Supreme Court terming the method of allotment of coal blocks between 1993 and 2011 as illegal.
Meanwhile, the BSE Sensex was up 63.53 points, or 0.24%, to 26,623.68.
On BSE, so far 3.51 lakh shares were traded in the counter, compared with an average volume of 3.72 lakh shares in the past one quarter.
The stock hit a high of Rs 246.85 and a low of Rs 231 so far during the day. The stock hit a 52-week high of Rs 350 on 9 June 2014. The stock hit a 52-week low of Rs 213.50 on 30 August 2013.
The stock had underperformed the market over the past one month till 27 August 2014, falling 13.90% compared with 1.66% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 22.49% as against Sensex's 8.19% rise.
The large-cap company has an equity capital of Rs 91.49 crore. Face value per share is Re 1.
Shares of Jindal Steel & Power (JSPL) have lost 20.68% in four trading days from Rs 294.25 on 22 August 2014. The stock lost a staggering 13.97% to settle at Rs 253.15 in a single trading session on Monday, 25 August 2014 after the Supreme Court on Monday, 25 August 2014, termed the method of allotment of coal blocks between 1993 and 2011 as illegal.
The allocations had no "objective criteria" and "no fair and transparent procedure", the judges said, adding they were impermissible. The quashing of these allocations still remains to be decided in further hearings. The court suggested the appointment of a panel of retired apex court judges to help the court in this matter. The case will be heard on 1 September 2014. The Supreme Court further disallowed exploitation of captive mines by ultra mega power projects, adding that captive mines cannot be used for commercial purposes.
According to media reports, JSPL is the worst affected player as the Supreme Court judgement will delay the process of securing mining rights for its Utkal B1 mine, critical for its Angul steel cum power project.
JSPL is operating two mines in Chhattisgarh having a little over 12 million tonnes a year production capacity now. These are for JSPL's Raigarh steel plant and Tanmar Power plant.
JSPL has also been allocated Utkal B1 mine in Odisha for use in Angul, one mine in Chhattisgarh for Raigarh steel unit and Jitpur mine in Jharkhand for its captive power plant at Godda, reports suggested.
JSPL's consolidated net profit fell 15.4% to Rs 418.13 crore on 10.3% increase in total income to Rs 5068.79 crore in Q1 June 2014 over Q1 June 2013.
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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