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Day after CBI files chargesheet, JSPL shares slide by 4%

Day after CBI files chargesheet, JSPL shares slide by 4%
Shares of Jindal Steel & Power Ltd (JSPL) ended over 4 per cent lower today after the CBI filed a chargesheet against company’s owner Naveen Jindal in connection with a coal block allocation scam case. The stock closed the day with a loss of 4.16 per cent at Rs 139.55. During the day, it plunged 7.28 per cent at Rs 135. JSPL’s scrip fell by 4.21 per cent to end at Rs 139.60. 

Following the dip in the stock, the company’s market valuation fell by Rs 552.52 crore to Rs 12,767.48 crore. On the volume front, 9.13 lakh shares of the company changed hands at the BSE and over 98 lakh shares were traded at the NSE. On Wednesday the CBI filed the chargesheet against the company’s owner and Congress leader Naveen Jindal, ex-Minister of State for Coal Dasari Narayan Rao, former Jharkhand Chief Minister Madhu Koda and 12 others in connection with the Amarkonda Murgadangal coal block allocation case. Jindal Steel refuted allegations made by the CBI in its chargesheet about allocation of a coal block and said the company will be availing appropriate remedy in accordance with the law. 

In a statement issued after the CBI filed the chargesheet against the company, JSPL spokesperson said, “We are shocked to know from the media about filing of a charge sheet by CBI with respect to allocation of a coal block.” The company claimed that the allocation was made to it on merit. “During the course of the investigation the company and its officials fully co-operated with the authorities, and whenever asked, explained and provided all the supporting documents,” it said. Refuting all the allegations made against the company, the spokesperson said, “We will be availing appropriate remedy in accordance with law. We have full faith in our judiciary and are confident to come out clean during the process.” In the stock market, the BSE benchmark Sensex ended at 27,011.31, down 214.62 points. 

A few days ago, Naveen Jindal-led JSPL said it was looking to invest about Rs 20,000 crore in its power business to take the generation capacity to 8,600 MW in the next five years. “Jindal Steel & Power Ltd (JSPL) has planned an additional capacity of 3300 MW in Jharkhand and Andhra Pradesh with an investment of Rs 20,000 crore by 2020,” Group CEO and Managing Director Ravi Uppal said in an interview. The company’s present capacity is 5,300 MW including 3400 MW of its arm Jindal Power. After successful commissioning of Tamnar expansion project in Chhattisgarh in record time “where we have achieved UMPP scale and created sort of benchmark”, the company is enthused about its power projects, Uppal said. 
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