Jindal Steel rises 15% after clean chit from CCI
JSPL got a clean chit on allegations of cartelisation, as CCI said it didn't find enough evidence to support the charges
Mumbai: Shares of Jindal Steel and Power Ltd (JSPL) on Friday rose by 15.32% in opening trade, after a CNBC TV report said that the Competition Commission of India (CCI) on Thursday gave a clean chit to the company on allegations of cartelisation, saying it didn’t found enough evidence to support the same.
In morning trade, the stock touched a high of ₹ 94.1 a share, a level last seen on 24 June.
“The case pertains to the government’s decision of cancelling the coal mine bids of JSPL and Balco for four blocks amid reports of speculation of cartelisation during auctions. The government had forwarded the complaints alleging cartelisation against JSPL to CCI, stating the company indulged in anti-competitive practices and price cartelisation," the report said.
In February, the company had won Gare Palma IV-2 and IV -3 mines in India’s coal auction and the winning bid was at ₹ 108 per ton for mine. The same allocation was cancelled on 20 March and the mines were placed with Coal India Ltd, which was appointed as its custodian on 27 March.
At 10.06am, JSPL was trading at ₹ 87.60 on the BSE, up 7.4% from its previous close, while the benchmark Sensex index fell 0.2% to 25,788.52 points.
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