JSPL Shares Fall on Reports That Mines Won Could be Re-Auctioned

Shares of Jindal Steel & Power (JSPL) fell as much as 1.7 per cent on Wednesday after Press Trust of India citing sources said the government have go for re-auction of four mines sold in first phase of the coal auction though a final decision has not been taken yet.

The Press Trust of India report said that after complaints pertaining to these mines including on bidding price, the government has asked nominated authority to re-examine them.

Jindal Steel and Power (JSPL) was the successful bidder for Gare Palma IV 2 and Gare Palma IV 3 mines, while Balco successfully bid Gare Palma IV/1 mine and BS Ispat bagged Marki Mangli III mine.

Balco had won Gare Palma IV/1 block at Rs 1,585 a tonne, Jindal Power won Gare Palma IV/2&3 at Rs 108 and tonne and BS Ispat won Marki Mangli III block at Rs 918 a tonne.

JSPL shares have rallied over 20 per cent since February 19 when it won these mines, outperforming the Nifty.

At 9:32 a.m., JSPL shares were down 1.4 per cent at Rs 186.90, underperforming the Nifty which was up 0.14 per cent. (With Agency Inputs)