JSW Steel share plunges on media reports of CBI raid
03 Oct 2011
JSW Steel Ltd shares plunged to a 52-week low at Rs540 on the Bombay Stock Exchange on Monday on media reports, which the company denied, that the Central Bureau of Investigations (CBI) has conducted searches on the company's premises.
"A CBI team visited the company's Vijayanagar works today morning and sought certain information about procurement of iron ore," JSW Steel said in a statement, adding it "strongly denies" any such raids.
"JSW Steel has been procuring iron ore from various sources for its steel production requirements and every tonne procured is accounted, paid for and is in compliance with applicable rules and regulations," it said.
JSW Steel has and will fully cooperate and provide all the information that may be sought by the authorities concerned in this regard.
Shares of the company, in which Japan's JFE holds 14.8-per cent, was trading lower by 6.24 per cent at 555 rupees at mid-day trade.
On 26 September, JSW Steel announced a scaling down of production at its Vijaynagar plant to 30 per cent, following a Supreme Court order directing sale of iron ore produced by NMDC through e-auction.