New Delhi(PTI): Shares of Jindal Steel and Power slumped as much as 15% in morning trade today after the government rejected bids made by the company during the auction of coal blocks held recently.
Reacting to the development, shares of JSPL opened on a weak note, then lost further ground and slipped 14.97 per cent to touch an intra-day low of Rs 140.25 on the BSE.
Similar movement was witnessed on the National Stock exchange as well, where the stock opened at Rs 150, then fell 14.91 per cent to a low of Rs 140.
On Saturday, the government had rejected bids of Jindal Steel and Power Ltd (JSPL) amid speculation of cartelisation during the auction of coal blocks.
"Bids for Gare Palma IV/1, IV/2, IV/3 and Tara coal blocks not accepted," Coal Secretary Anil Swarup had tweeted.
Jindal Power had emerged as successful bidder for Gare IV/2, Gare Palma IV/3 and Tara Coal blocks while Bharat Aluminium Company(Balco) had won Gare Palma IV/1 coal block.
Jindal Steel and Power Ltd (JSPL) today moved Delhi High Court against the decision of the Centre to cancel coal blocks allocated to it.
JSPL said the Coal Ministry cancelled the allocation on March 20 and it feared the blocks Gare Palma IV/2, IV/3 and Tara in Chhattisgarh might be allocated to someone else as the government is "moving very fast".
The matter was mentioned before a bench of justices B D Ahmed and Sanjeev Sachdeva by senior advocate Rajiv Nayar who sought an urgent hearing.
The court listed the matter for hearing today before the appropriate bench.
The government had cancelled bids of JSPL and Bharat Aluminium Company (Balco) for four coal blocks amid speculation of cartelisation and had said it will take a final decision on these mines after deliberations.
The government was re-examining the bids for nine coal blocks, including those where JSPL and Balco emerged top bidders in the recently held auction.
Jindal Power had emerged as successful bidder for Gare IV/2, Gare Palma IV/3 and Tara coal blocks, while Balco had successfully bid for Gare Palma IV/1 coal block.
So far, a total of 33 coal blocks have been auctioned in two tranches. While in the first lot 19 coal mines were auctioned, in the second lot 14 coal blocks went under the hammer.