JSW Steel stock touches 52-week low on fears of unit closure
Shares of the company opened on a weak note in an already bearish market and then slipped 4.83 per cent to an intra-day low of Rs 581 on the BSE.
By PTI | Updated:
MUMBAI: Shares of JSW Steel slumped as much as five per cent today, dipping to 52-week low, after the company said its Karnataka facility may face a complete closure due to acute shortage of iron ore.
The company yesterday said that its Karnataka unit may come to a complete closure due to acute shortage of iron ore -- a development that could lead to shortage of steel in the domestic market and increase in prices.
The company resorted to a massive production cut of 70 per cent in the Vijayanagar plant in Karnataka due to shortage of iron ore after the Supreme Court imposed a ban on mining in the state.
Shares of the company opened on a weak note in an already bearish market and then slipped 4.83 per cent to an intra-day low of Rs 581 on the BSE. They tanked 4.96 per cent to a low of Rs 580.10 on the National Stock Exchange.
The stock however regained some lost ground and was trading at Rs 582.35, down 4.61 per cent on BSE and at Rs 581.60, down 4.72 per cent on NSE at 1234 hours.
"We may have to shut entirely (Vijayanagar plant)...There is a good possibility of that (closure) if the situation does not improve," JSW Vice Chairman and MD Sajjan Jindal said.
Meanwhile, Steel Secretary P K Misra has said that the government will present a fact-sheet before the apex court on how many units have been closed or have resorted to production cut. He sought inputs from the units in the state for the same.
The company yesterday said that its Karnataka unit may come to a complete closure due to acute shortage of iron ore -- a development that could lead to shortage of steel in the domestic market and increase in prices.
The company resorted to a massive production cut of 70 per cent in the Vijayanagar plant in Karnataka due to shortage of iron ore after the Supreme Court imposed a ban on mining in the state.
Shares of the company opened on a weak note in an already bearish market and then slipped 4.83 per cent to an intra-day low of Rs 581 on the BSE. They tanked 4.96 per cent to a low of Rs 580.10 on the National Stock Exchange.
The stock however regained some lost ground and was trading at Rs 582.35, down 4.61 per cent on BSE and at Rs 581.60, down 4.72 per cent on NSE at 1234 hours.
"We may have to shut entirely (Vijayanagar plant)...There is a good possibility of that (closure) if the situation does not improve," JSW Vice Chairman and MD Sajjan Jindal said.
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Meanwhile, Steel Secretary P K Misra has said that the government will present a fact-sheet before the apex court on how many units have been closed or have resorted to production cut. He sought inputs from the units in the state for the same.
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