BackJSPL share price down 4.7%
Shares plunged following media reports saying that the government may re-examine and reject bids submitted by the company
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Mumbai: Shares of Jindal Steel and Power ltd (JSPL) plunged 4.7% on Tuesday following media reports saying that the government may re-examine and reject bids submitted by the company for the Tara and Gare Palma coal fields.
At 12.45pm on Tuesday, JSPL was trading at ₹ 181.25 on BSE, down 4.7%, while India’s benchmark Sensex rose 0.6% to 28605.46 points.
“In case the blocks which are being re-examined are cancelled, it would be a major negative for the company," said an analyst from a domestic brokerage firm who declined to be named.
On 19 February, Shares of Jindal Steel had risen as much as 29.13% to ₹ 200.80—its sharpest gain since 31 October 2007—after the company submitted the closing bid for the Gare Palma IV-2 and IV-3 coal mines in an auction.
The final list of successful bidders for the second round of coal auctions for schedule III mines updated on the MSTC website has omitted names of Jindal Power Ltd, Jaypee Cement Corporation Ltd, Hindalco Industries Ltd, Usha Martin Ltd and Trimula Industries Ltd. MSTC Ltd is nodal agency to monitor the coal auctions.
Jaypee Cement had placed a closing bid of ₹ 1852 per tonne for the Mandla South block, Jindal Power had placed a closing bid of ₹ 126 per tonne for the tara coal block and Hindalco Industries had submitted a bid of ₹ 2127 per tonne for the Dumri coal block.
Share prices for Hindalco Industries on Monday closed 3.6% lower, however it recovered in Tuesday’s trade. At 12.45pm Hindalco Industries Ltd rose 4.2% to ₹ 132.20 on Tuesday. Share prices for Jaiprakash Associates Ltd fell 1.9% to ₹ 26.40 at 12.45pm on Tuesday.
Earlier, in the final list of successful bidders for the first round of coal auctions for schedule II mines updated on the MSTC website, names of successful bidders for three of the eighteen blocks put to bid were not updated. Some of the companies missing from the list were Bharat Aluminium Company Ltd, Jindal Power Ltd and BS Ispat Ltd.
Bharat Aluminium Company Ltd had submitted a closing bid of ₹ 1585 per tonne for the Gare Plama IV/1 block; Jindal Power submitted a closing bid of ₹ 108 per tonne for the Gare Palma IV/2 &3 blocks. BS Ispat had submitted a closing bid of ₹ 918 per tonne for the Marki Mangli III block.
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