JSPL shares end 7% up as CCI rules out allegations of cartelisation

Shares of Jindal Steel spiked over 15 per cent in trade on Friday following news reports the Competition Commission of India (CCI) gave a clean chit to JSPL on allegations of cartelisation in the bidding for allocation of three coal blocks.

The stock ended 7.23 per cent higher after rising as much as 15.31 per cent to Rs 94.10, on the Bombay Stock Exchange (BSE).

The competition watchdog said it has not found enough evidence to support the claim that JSPL cartelised with other companies during coal block allocation auctions were going on.

The case pertains to the government's decision of cancelling the coal mine bids of JSPL and Balco for four blocks, after the coal ministry expressed concern about the low bids received in coal block auction and did not accept bids for three blocks of Jindal Steel and Power amid speculation of cartelisation.

This decision was legally challenged and the Delhi high court in an interim order had reportedly found no evidence of cartelisation.

The government had forwarded the complaints alleging cartelisation against JSPL to CCI, stating the company indulged in anti-competitive practises and price cartelisation.