Millennium Post

Hindalco shares slide 5.5% on K M Birla’s coal case summons

Shares of Hindalco Industries on Wednesday tumbled over 5.5 per cent, wiping out Rs 1,568.33 crore from market valuation, after its promoter Kumar Mangalam Birla was summoned as accused among others by a special court in a coal scam case.

After plunging 7.78 per cent to Rs 127.30 in intra-day trade at the BSE, shares of Hindalco Industries finally ended at Rs 130.45, down 5.51 per cent. At the NSE, the stock tanked 5.11 per cent to end at Rs 131. In the process, the company’s market valuation tumbled Rs 1,568.33 crore to Rs 26,937.67 crore. The stock was the biggest loser among the blue-chips on both Sensex and Nifty. In terms of volume, 22.44 lakh shares of the company changed hands at the BSE and over 2 crore shares were traded at the NSE during the day.

“Among day’s major market moving events, ex-Prime minister Manmohan Singh, leading industrialist Kumar Mangalam Birla, ex-coal secretary P C Parakh were summoned in popularly called ‘coalgate’ scam involving allocation of Talabira II coal block in Odisha in 2005. On the news, shares of Birla owned Hindalco Industries corrected by 7 per cent,” said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Ltd.
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