JSPL shares tank over 8.5%; m-cap down Rs 1,482 cr

Shares of Jindal Steel & Power Ltd witnessed massive selling pressure today, falling by over 8.5 per cent amid reports that government may reject company's bids for two coal blocks in Chhattisgarh.
After falling 17.55 per cent to Rs 156.85 in intra-day trade on the BSE, shares of the company finally ended 8.52 per cent lower to settle at Rs 174.05.
At the NSE, the stock plunged 8.37 per cent to settle at Rs 174.50. The stock was the biggest loser among the 50-Nifty scrips.
Following the sharp decline in stock price, company's market value dipped Rs 1,482 crore to Rs 15,923.90 crore.

In terms of volume, 42.04 lakh shares of the company changed hands at BSE and over 3 crore shares were traded at NSE during the day.
"Jindal Steel & Power Ltd (JSPL) plunged 17.5 per cent intra-day amid speculations that the government is about to reject company's bids for two coal blocks in Chhattisgarh," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Ltd.

According to media reports, government is expected to reject two bids from JSPL for Gare Palma and Tara coal blocks citing "very low" bids and talk of cartelisation.
The coal auction kitty has crossed Rs 2 lakh crore mark, surpassing CAG's estimate of Rs 1.86 lakh crore revenue loss due to allocation of mines without auction by the previous government.

Auctions were conducted recently after the Supreme Court in September last year cancelled allocations of 204 blocks since 1993, saying their allocation was "arbitrary and illegal".