Jindal Steel tanks 15.2% amid coal allocation case - Indian Express

ENS Economic Bureau : Mumbai, Wed Jun 12 2013, 04:17 hrs Shares of Jindal Steel and Power Ltd (JSPL) plunged over 15 per cent on Tuesday, wiping off an estimated Rs 3,786 crore from the company's market capitalisation, as the CBI booked the company's chairman Naveen Jindal as an accused in the coal allocation scam. After slumping 24 per cent to Rs 202 — its 52-week low during intra-day trade — the stock finally ended at Rs 226.35, down 15.2 per cent from its previous close on the BSE. With the shares taking a big hit, market players are of the view that investors might be well advised to avoid the stock as the company could stay under the glare of investigating agencies for sometime. "The company has assets, good business and has been doing well. But with the alleged association with the coal scam cropping up, there is are now fresh uncertainties," a top official with a leading mutual fund said on conditions of anonymity. "The charges, while they still have to be established in a court of law, certainly do affect investor confidence," said the head of research of a leading brokerage firm. As on March 2013, JSPL's promoters held a 59.07 per cent stake in the company while the FII's held 21.74 per cent stake. Experts say that since the promoter is a dominant owner, any adverse linkage of the promoter in the coal scam may have a long term impact on the company. Manu Kapoor, head of external affairs, Jindal Steel and Power said, "JSPL, as a law abiding company, is governed by a strong ethical code of conduct. This is an ongoing CBI investigation into coal block allocation. At this stage of investigation, JSPL is committed to fully cooperate with CBI." The CBI also booked Gagan Sponge, along with JSPL, in the coal block allocation scam. ALSO READ Coal block auctions to wait till CBI wraps up allocation probe FIPB meet on Jet-Etihad deal postponed to Friday 17 states to see substantial power shortages, south to be worst affected Ex-CEO Phaneesh Murthy removed from iGate's board Please read our terms of use before posting comments TERMS OF USE: The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s). via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNFsxgjSbh-7Zt9uKYYjNuHVohoT7Q&url=http://www.indianexpress.com/news/jindal-steel-tanks-15.2-amid-coal-allocation-case/1127997/

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