Electrosteel casts a dark shadow

Electrosteel Castings is a big loser today morning, down currently 12.5% at Rs.16.45, with an intra day low at Rs.15.05. Its 52-week low stands at Rs.12.72.

The stock is smeared a deep shade of red today after news came in that the CBI has registered a fresh case in connection with irregularities in the allocation of coal blocks in 2005, in Parbatpur at Jharkhand for its pig iron plant at Khardah (West Bengal) and Kalahasti (Andhra Pradesh).

This is the same coal block which is under the Comptroller and Auditor General's (CAG) scanner wherein 29 of these blocks from its list of 57 led to a total loss of Rs.1.86 lakh crore to the nation.

The CBI conducted searches at five offices of the company in Kolkata, Ranchi and Bokaro. It has registered a case of alleged cheating and criminal conspiracy in addition to charges of violation of provisions of Prevention of Corruption Act