Jindal Steel slumps after govt rejects bids for 3 coal mines

23 March 2015

Shares in Jindal Steel and Power Ltd(JNSP.NS) slumped as much as 14.9 percent, heading towards their biggest daily loss since June 11, 2013, after the government rejected its bids for three coal mines put up for auction.

India has rejected winning bids for four of 33 coal mines put up for auction in the past two months, the top civil servant in the country's coal ministry said on Saturday.

"The coal ministry has indicated that the blocks might be reauctioned, allotted to the states or given to Coal India (COAL.NS) - a decision is yet to be taken," said Citigroup analyst Raashi Chopra in a note.

Shares in the company were down nearly 9 percent to 149.75 rupees at 11:17 a.m.