Fair trade regulator Competition Commission of India’s officials on Monday launched searches at the premises of steel pipe and tube manufacturers Jindal Saw Ltd (JINDALSAW) and Maharashtra Seamless Ltd (MAHSEAMLES), sources told Zee Business.
Shares of both listed companies faced selling pressure in Tuesday’s trade.
Why were Jindal Saw and Maharashtra Seamless offices raided?
The searches were linked to allegations of collusion in multiple pipe tenders between 2019 and 2022, according to the sources.
Both companies are accused of entering into agreements and arrangements while bidding for Oil & Natural Gas Corp (ONGC) tenders, said the sources.
The companies allegedly placed bids in a way that ensured contracts were awarded to them, the sources added.
The raids follow the competition watchdog’s order in May demanding a probe into the matter following a complaint from the state-run energy giant.
At the time of publishing this report, neither Maharashtra Seamless nor Jindal Saw responded to Zee Business’s email requests for comment.
What do Jindal Saw and Maharashtra Seamless do?
Both companies are part of the broader Jindal business group. While both listed entities operate independently in similar areas, they are linked by promoter group members from the Jindal family.
Both companies have manufacturing plants and operations across the country with presence in multiple states.
Jindal Saw (JINDALSAW) & Maharashtra Seamless (MAHSEAMLES) shares under pressure
Jindal Saw shares fell as much as 2.4 per cent to Rs 206.3 apiece during Tuesday’s trade on BSE, halting a four-day winning run that added nearly five per cent to the stock’s value.
Maharashtra Seamless shares declined 1.3 per cent to hit an intraday low of Rs 631.7 apiece on BSE.
At noon, both stocks were struggling under the flatline, with Jindal Saw trading 1.5 per cent lower at Rs 208.2 and the Maharashtra Seamless scrip trading down 1.2 per cent at Rs 632 apiece on the bourse.
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