Investigators raid Maharashtra Seamless premises; shares under pressure

Fair trade regulator Competition Commission of India’s officials on Monday launched searches at the premises of steel pipe and tube manufacturers Jindal Saw Ltd (JINDALSAW) and Maharashtra Seamless Ltd (MAHSEAMLES), sources told Zee Business.

Confirming the news, Maharashtra Seamless said CCI conducted inspections at its Delhi and Gurugram offices on September 15 and 16. The company said it is fully cooperating with the investigation.

Shares of both listed companies faced selling pressure on Tuesday.  

Why were Jindal Saw and Maharashtra Seamless offices raided?

The searches were linked to allegations of collusion in multiple pipe tenders between 2019 and 2022, according to the sources. 

Both companies are accused of entering into agreements and arrangements while bidding for Oil & Natural Gas Corp (ONGC) tenders, said the sources. 

The companies allegedly placed bids in a way that ensured contracts were awarded to them, the sources added. 

The raids follow the competition watchdog’s order in May demanding a probe into the matter following a complaint from the state-run energy giant. 

At the time of publishing this report, neither Maharashtra Seamless nor Jindal Saw responded to Zee Business’s email requests for comment.

What do Jindal Saw and Maharashtra Seamless do?

Both companies are part of the broader Jindal business group. While both listed entities operate independently in similar areas, they are linked by promoter group members from the Jindal family.

Both companies have manufacturing plants and operations across the country with a presence in multiple states.

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Jindal Saw (JINDALSAW) & Maharashtra Seamless (MAHSEAMLES) shares under pressure 

Jindal Saw shares ended 0.5 per cent lower at Rs 210.3 while the Maharashtra Seamless stock declined 1.6 per cent to settle at Rs 629.7 apiece on BSE.

With that, the Jindal Saw scrip halted halting a four-day winning run that added nearly five per cent to its value.