JSPL shares slump over 14 per cent after govt rejects bids for 3 coal mines

Jindal Steel and Power (JSPL) shares slumped as much as 15 per cent in morning trade on Monday 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 Bombay Stock Exchange (BSE).

Similar movement was witnessed on the National Stock Exchange (NSE) 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 (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.

Shares of the company were trading at Rs 153.10 per share, down 11.85 points or 7.18 per cent on BSE at 3:24 pm.