Shares of Jayaswal Neco Industries Limited (JNIL) fell sharply, hitting a 52-week low, following news of the conviction of its Promoter and Managing Director, Shri Ramesh Jayaswal, in a coal block allocation case. The stock dropped by 8% in intraday trading as investors reacted to the development.
The Central Bureau of Investigation (CBI) Special Judge in New Delhi convicted Shri Ramesh Jayaswal on December 9, 2024, under sections 420, 120-B, 471, and 420 of the Indian Penal Code (IPC) in connection with the allocation of Brinda, Sisai, and Meral coal blocks in Jharkhand. The conviction pertains to his tenure as Director and Authorized Signatory of M/s Abhijeet Infrastructure Private Limited.
JNIL clarified that the case does not involve the company or any other associated individuals, limiting the direct impact on its operations. The company has assured full compliance with regulatory disclosure requirements, as per SEBI guidelines.
Despite these assurances, market sentiment turned negative, leading to significant losses in the stock price. Investors are closely monitoring the situation for further developments.
