Shares of Jindal Saw declined in early trade on February 19 after the company informed exchanges that its American Petroleum Institute (API) license for seamless pipes has been suspended. The stock was trading at Rs 184.16, down 1.64% or Rs 3.07, compared to the previous close of Rs 187.23.
The regulatory action follows non-conformances identified during a recent API audit. As per the suspension letter, Jindal Saw is barred from affixing the API monogram on its API seamless pipes. The original license was valid until April 6, 2026.
In its disclosure under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company said it is actively responding to API and implementing corrective measures to address the issues flagged during the audit. Jindal Saw also stated that its seamless pipe manufacturing capacity is fungible in nature and has been reallocated to other products to mitigate the impact.
The company indicated that the suspension may not have a material impact on operations due to this operational flexibility. It further assured that it will continue engaging with API authorities and update stock exchanges on any material developments regarding the revocation of the suspension.