Jindal Steel share tanks over 9%; mcap dips by Rs 2,015 cr on buyback plan

MUMBAI: Shares of Jindal Steel & Power Ltd on Friday fell sharply by over 9 per cent on heavy selling, after the company said it will buy back 8.7 per cent of its paid up capital, amounting not more than Rs 1,000 crore.

After plunging 12.3 per cent to Rs 213.50 in intra-day trade, the stock finally ended the day 8.85 per cent lower at Rs 221.90 on the BSE. At the NSE, the scrip tumbled 9.22 per cent to Rs 221.05. Following the dip in the stock, the market value of JSPL dropped by Rs 2,015 crore to Rs 20,743 crore.

The stock was the worst performer among the blue-chips on both the key indices -- Sensex and Nifty. The company Board in its meeting today fixed a price of Rs 261 per share for the buyback offer from the open market through stock exchanges, JSPL said in a filing to the BSE.

Meanwhile, in a separate announcement, JSPL said that it has appointed Rajagopal, Group CFO and Director on its Board from today. His appointment follows exit of Sushil Maroo, former Deputy Managing Director, from the company Board.