Hindalco shares fall 5% after CBI books KM Birla in coal scam
Shares of Aditya Birla-promoted firms such as Hindalco Industries, AB Nuvo and Idea Cellular on Tuesday fell by up to 5 per cent after the CBI registered a case against industrialist Kumar Mangalam Birla in connection with alleged irregularities in allocation of coal blocks in 2005.
However, later, some of these stocks recovered lost ground, with Hindalco trading higher by 0.45 per cent and Idea up 0.03 per cent in late morning trade.
Hindalco Industries’ scrip had tanked 4.97 per cent to Rs. 105.10, while Aditya Birla Nuvo had fallen by 4.16 per cent to Rs. 1,209.90 and Idea Cellular lost 1.35 per cent to Rs. 182.45 on the BSE.
Among others, shares of Grasim fell by 1.18 per cent, while Aditya Birla Chemicals was down 1.42 per cent and Aditya Birla Money shed 3.71 per cent.
After registering the 14th FIR in the coal scam, CBI teams carried out coordinated searches at nearly six locations in Mumbai, Delhi, Hyderabad and Bhubaneshwar.
CBI sources said the agency has booked Mr. Birla as a representative of Aditya Birla Group and his group company Hindalco for alleged corruption in the allocation of Talabira two coal block in Odisha which was allotted to it on November 10, 2005.