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Shares of four companies bearing the name of ‘Jindal’ sank to their 52-week lows after news channels announced that Member of Parliament and Chairman of Jindal Steel & Power Ltd (JSPL) Naveen Jindal has been named in a case relating to coal scam.
Investors hammered the stocks that had the name of ‘Jindal’ in them irrespective of whether Naveen Jindal was holding any key position or not in them or the company even belonged to the O.P. Jindal group.
The four companies having Jindal as part of the name — Jindal Saw Ltd, Jindal Steel & Power Ltd, Jindal South West Holdings Ltd and Jindal Drilling and Industries Ltd — dived to their 52-week lows after the news channels announced the CBI case relating to the coal scam, in which a former Minister of State for Coal Narayana Rao, and Naveen Jindal were named, among others.
The announcement sent the Jindal stocks into a tailspin. Jindal Saw fell to a 52-week low of Rs 48.50 before recovering to Rs 52.70, a loss of Rs 6.50 or 10.98 per cent. The counter witnessed a trading volume of 5.01 lakh shares.
JSPL shares plunged over 15 per cent, wiping Rs 3,787 crore from its market valuation. After slumping 24.3 per cent to Rs 202 — its 52-week low in intra-day trade — the stock finally ended at Rs 226.35, down 15.18 per cent from its previous close on the BSE. On the NSE, the stock nosedived 15.25 per cent to Rs 226.50. The scrip was the top loser on both the key indices — Sensex and Nifty.Following the slump in the stock, the market valuation of the company tanked by Rs 3,787 crore to Rs 21,159 crore.
Jindal South West Holdings also had to bear the investors’ pressure losing Rs 32.10 or 7.45 per cent to Rs 398.50. This share also dipped to a new 52-week low of Rs 380.55. Jindal Drilling and Industries shed Rs 4.05 to Rs 186.90 and this also touched a new 52-week low of Rs 181.
Media reports mentioned that the CBI has named former Minister of State for Coal Dasari Narayan Rao and MP Naveen Jindal as accused and a FIR has been filed against Jindal Steel and Power Ltd, of which Naveen Jindal is the Chairman.
But investors took the opportunity to short-sell the stocks having the name of Jindal in them. While three companies belong to the O.P. Jindal group, only JSPL among them is managed by Naveen Jindal with the other two companies — Jindal Saw and JSW Holdings being managed by his brothers — Prithvi Raj Jindal and Sajjan Jindal, respectively. Jindal Drilling belongs to D.P. Jindal Group with Raghav Jindal being its MD.
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