Shares of cement companies such as ACC, Ambuja Cements and Jaiprakash Associates shed up to 5 per cent in trade on Thursday after Competition Commission of India on Wednesday imposed more than Rs 6,700 crore penalty on 11 cement companies for cartelisation.
A fine of Rs 1,147.59 crore has been imposed on ACC, while penalties on Jaiprakash Associates and Ultratech are Rs 1,323.60 crore and Rs 1,175.49 crore, respectively.
The fines on other companies are Rs 274.02 crore (Century), Rs 187.48 crore (India Cements), Rs 128.54 crore (J K Cements), Rs 490.01 crore (Lafarge), Rs 258.63 crore (Ramco), ACL (Rs 1,163.91 crore) and Binani (Rs 167.32 crore), according to the release.
CMA faces a fine of Rs 0.73 crore.
Reacting to the news, the stock of ACC fell as much as 2.55 per cent, Ambuja Cements shed 2.36 per cent, while Jaiprakash Associates slipped 4.97 per cent on the BSE. Stocks of Ultratech, India Cements and Binani Industries were also trading lower.
Penalising the companies, CCI said the actions of the companies and the CMA are not only detrimental to the interests of consumers, but also to the whole economy as cement is a critical input in construction and infrastructure industry and vital for the economic development.
Through a separate order, the regulator has slapped Rs 397.51 crore fine on Shree Cement, for unfair businesses practices.