JSW Steel shares fall after court orders CBI probe in Karnataka mining case
In an interview to NDTV Profit, Saumitra Chaudhuri, Member of Planning Commission, said that the rupee’s fall is a combination of various factors like fiscal deficit and weak capital flows. “The RBI is trying to stabilise the rupee,” he added.
Shares of JSW Steel plunged on the bourses Friday after the Supreme Court ordered a CBI probe against it and two other companies for alleged involvement in illegal iron ore mining in Karnataka. JSW, India's third biggest steelmaker, runs a 10-million-tonne a year plant at Vijayanagar in the Karnataka.
Earlier, a Supreme Court-appointed panel had recommended the court direct the Central Bureau of Investigation (CBI) to look into linkages between donations made by JSW group firms and alleged receipt of illegal ore by JSW Steel.
"JSW follows highest corporate governance and we haven't done anything wrong. Our books are open and will co-operate with the investigating agencies," the company said in a statement to NDTV Profit.
Shares of the company ended 5.2 per cent lower at Rs 627 on the BSE, while the Sensex closed 0.77 per cent lower at 16,293. The stock had plunged to an intraday low of Rs 606.10 after the news broke.
Production at JSW Steel's Vijayanagar plant has been affected since last August after the Supreme Court put an interim ban on mining in the state citing illegalities in some mines. The stock has seen sharp selling over these allegations and share prices have tumbled nearly 32 per cent over the last 12 months.
Japan's JFE Holdings holds a 15 per cent stake in JSW Steel.
(With inputs from Reuters)