JSW Steel shares fall after SC orders probe

Shares of JSW Steel on Friday plunged over 8 per cent in intra-day trade after Supreme Court ordered a CBI probe against former Karnataka Chief Minister B S Yeddyurappa for allegedly granting undue favours to firms, including of the Jindal group.

The shares fell 8.36 per cent to a low of Rs 606.10 on the BSE, before recovering some of the losses. The stock finally ended the day 5.19 per cent lower at Rs 627.05, even as the company said it was not party to any illegal activity and will cooperate in any probe.

Similar movements were seen on the National Stock Exchange, where the stock dived 8.41 per cent after the court order. Later, it closed the day at Rs 627.15, down 5.16 per cent.

"It has not done any illegal activity nor connected with any wrong doing. It has full faith in the judicial process and its books are open and it will fully co-operate with the investigating agencies," JSW said in a statement following the apex court order.

The JSW statement also quoted company's Joint Managing Director Seshagiri Rao saying that "the group follows highest standards of corporate governance. JSW Steel is in fact the victim of alleged illegal mining."

The Sajjan Jindal-led company, which runs a 10 million tonne per annum plant at Karnataka's Vijayanagar, is country's third largest steelmaker.