Jindal Steel & Power surged 6.2% to Rs 143.80 at 10:35 IST on BSE, after the government proposed an ordinance to allow e-auction of mines to private players.
Meanwhile, the BSE Sensex was up 181.01 points, or 0.68%, to 26,610.86
On BSE, so far 9.69 lakh shares were traded in the counter, compared with an average volume of 7.04 lakh shares in the past one quarter.
The stock hit a high of Rs 147.45 and low of Rs 138.60 so far during the day. The stock hit a 52-week low of Rs 128 on Monday, 20 October 2014. The stock hit a 52-week high of Rs 350 on 9 June 2014.
The stock had underperformed the market over the past one month till 20 October 2014, falling 35.83% compared with 2.44% fall in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 54.41% as against Sensex's 3.07% rise.
The large-cap company has an equity capital of Rs 91.49 crore. Face value per share is Re 1.
Coal and power minister Piyush Goyal said at the briefing on Monday, 20 October 2014 that in the next three to four months, 74 mines, where production has started, is close to starting, or where substantial work has been done, will be auctioned to the eligible companies. The licenses will be auctioned to private-sector companies but only for captive use, meaning the coal can be only used by the companies and not sold to others. As per reports, Jindal Steel & Power (JSPL) will be allowed to participate in the e-auction process.
The government is reallocating mining licenses after the Supreme Court last month canceled 214 coal licenses issued to private and public companies since 1993, saying the way they were given out was nontransparent and arbitrary.
Arun Jaitley, the country's finance minister, said on Monday, 20 October 2014 that the issue needed to be discussed expeditiously as power, steel and cement companies were going to suffer due to nonavailability of coal mines. Jaitley said that enough mines would be auctioned to meet the needs of these companies.
Meanwhile, JSPL after market hours yesterday, 20 October 2014, in a clarification with regard to media news item titled "Coal Scam : CBI files fresh case against Jindal Steel" reiterated that all its actions are in keeping with the legal framework of the country and that the company complies with the law in letter and in spirit. JSPL continues to co-operate with all the authorities in a responsive manner, it added.
The Central Bureau of Investigation (CBI) on 19 October 2014 registered a fresh case of alleged cheating and corruption against Jindal Steel and Power (JSPL) among others in connection with its probe into coal blocks allocation.
The CBI alleged that 'Gare Palma IV/1' coal block was allocated to JSPL for its sponge iron plant (SIP). It was alleged that JSPL proposed and entered into irregular mining lease covering area much beyond the coordinates stipulated by Ministry of Coal, resorted to excess coal mining, irregular regularization of area beyond coordinates and excess coal mined, sale of raw coal, sale of coal fines and middling to other than specified end users, irregular permission for consumption of coal in expansion of kilns and other related allegations. Searches have been conducted on 19 October 2014 at four locations in Raigarh District, Chhattisgarh which led a recovery of incriminating documents. Further investigation is in progress, the CBI said.
Shares of JSPL have been on sustained downtrend, sliding 53.98% in about two months to Rs 135.40 on 20 October 2014 from Rs 294.25 on 22 August 2014. The fall was triggered by the Supreme Court on 25 August 2014 terming the method of allotment of coal blocks since 1993 as illegal.
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.
Powered by Capital Market - Live News
