Mumbai: Shares of Jindal Steel and Power slumped as much as 15% in morning trade today after the government rejected bids made by the company during the auction of coal blocks held recently.

Reacting to the development, shares of JSPL opened on a weak note, then lost further ground and slipped 14.97 % to touch an intra-day low of Rs 140.25 on the BSE. Similar movement was witnessed on the National Stock exchange as well, where the stock opened at Rs 150, then fell 14.91 % to a low of Rs 140.

On Saturday, the government had rejected bids of Jindal Steel and Power Ltd (JSPL) amid speculation of cartelisation during the auction of coal blocks. “Bids for Gare Palma IV/1, IV/2, IV/3 and Tara coal blocks not accepted,” Coal Secretary Anil Swarup had tweeted.

Jindal Power had emerged as successful bidder for Gare IV/2, Gare Palma IV/3 and Tara Coal blocks while Bharat Aluminium Company(Balco) had won Gare Palma IV/1 coal block.