Sugar stocks today fell as the Competition Commission of India has imposed a penalty of Rs 38 crore on 18 sugar mills and two trade associations, ISMA and EMAI, for rigging bids in joint tenders floated by public sector oil marketing companies.
Shares of Bajaj Hindusthan Sugar Ltd, Dalmia Bharat Sugar and Industries Ltd and Balrampur Chini Mills Ltd plunged as much as 3.2-9.1 per cent.
Bajaj Hindusthan Sugarhad on Wednesday said that the Competition Commission of India has imposed a penalty of Rs12.35 crore for alleged contravention of provisions of the Competition Act. The order relates to a joint tender floated by oil marketing companies for supply of ethanol. The comapny said that it will appeal against the order.
Bajaj Hindusthan's stock posted biggest intraday percentage fall since May 14. Bajaj Hindusthan's stock had gained 72 per cent in the last seven sessions following a hike of up to 25 per cent in ethanol purchase prices and on hopes that the government may consider a proposal to get mills to export 5 million tonnes of sugar by incentivising overseas sales in the 2018/19 season.
(With inputs from Reuters)
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