Cement stocks slide on CCI penalty
The maximun fine was imposed on Jaiprakash Associates followed by Ultratech, Ambuja and ACC cements.
Mumbai: Cement stocks, including those of ACC and Ambuja today lost ground, falling up to 6.3 per cent after competition watchdog CCI slapped a hefty Rs 6,307 crore penalty on 11 companies for price cartelisation.
Shares of ACC tanked 5.17 per cent to Rs 1,191, while Ambuja Cements lost 5.18 per cent to Rs 162.70 and Jaiprakash Associates plunged 5.96 per cent to Rs 70.10 on the BSE.
Among others, Ultratech Cements tumbled 5.7 per cent, India Cements was down 6.39 per cent, Madras Cements fell 5.63 per cent, JK Cement lost 5.63 per cent and Century Textiles slipped 4.63 per cent.
The maximum fine was imposed on Jaiprakash Associates at Rs 1,323.6 crore followed by Aditya Birla Group's Ultratech Cements (Rs 1,175.49 crore), Ambuja Cements (Rs 1163.91 crore) and ACC (Rs 1,147.59 crore).
The other companies found guilty are Grasim Cements(now merged with Ultratech), Lafarge India, JK Cement, India Cements, Madras Cements, Century Textiles and Binani Cements.
Reacting to the CCI order, Ambuja Cements in a filing to the BSE today said, "In the context of the investigation, ACL has delivered all the information and clarifications requested by the authorities. However, ACL contests the allegations and findings against the company.
Ambuja Cements will appeal against this order to the Appellate Tribunal and will seek a stay on the aforesaid penalty.
Similarly, ACC in a separate filing to the stock exchange said, "The company furnished all information and clarification requested by the authorities in the context of the investigation. The company feels aggrieved by this order and will appeal against it before the Competition Appellate Tribunal."
Meanwhile, in the broader market the BSE Sensex was trading at 16,890.71, down 141.85 points at 1200hrs.