Market slide hits JVSL, Essar Steel investors most

Our Markets Bureau

Mumbai, July 15: Investors of steel companies have been badly affected during the last one year’s slide in the stock prices in general, the resultant erosion in market capitalisation and therefore, in the value of their investments in equity stocks.

Of the top 10 companies with highest number of shareholders, it were the investors of Jindal Vijaynagar Steel Ltd (JVSL) and Essar Steel Ltd, who have been the worst affected because of the slide in the stock prices of these companies.

The investors of Tata Steel, too were nursing their wounds as the stock is currently traded at its close to its 52-week low.

According to a recently released list by The Stock Exchange, Mumbai (BSE) of top 50 companies with maximum number of shareholders as on March 31 2001, Reliance Petroleum Limited (RPL) tops the list with 19.42 lakh shareholders; JVSL and ESL are listed at third and ninth position with 12 lakh and 6.81 lakh shareholders respectively.

Essar Oil Ltd (EOL) has 4.84 lakh shareholders. Thus, the slide in share prices of the two major steel producer of the country JVSL and ESL has affected close to 19 lakh investors.

The share price erosion in these two companies along with one more from the Essar group, the Essar Oil Limited (EOL) has affected more than 25 lakh investors across the country.

The share price of JVSL, ESL and EOL remained subdued throughout the past 52-weeks and remained below the face value of Rs 10.
JVSL shareprice closed at Rs 3.15 on Friday last, while its 52-week high/low was Rs 6 and Rs 3 respectively.

ESL shareprice as on Friday last was Rs 3.45 while its 52-week high/low was Rs 11 and Rs 3 respectively. In case of EOL, the last closing price on Friday last was Rs 3.95 while its 52-week high/low was Rs 6 and Rs 3 respectively.

Another largest steel company who has larger shareholder base has however, fared well but its shareprices are quoted currently near to its 52-week low.

The stock of Tata Steel closed at Rs 101.25 while its 52-week high/low was Rs 159 and Rs 97 respectively.

The company has close to 8 lakh shareholders and is listed at the 6th position in the list.

Another company who has contributed largely to the investors wealth erosion is Nagarjuna Fertiliser, which had 5.31 lakh shareholders. The stock price is quoted at below the face value at Rs 6.20.

There are some of the companies with the large shareholder base like RPL, Videocon International and ICICI, whose share prices are quoted at close to their 52-week low and hence are major contributors in the loss of wealth to the investors.

The share price of RPL was near its 52-week low of Rs 45 at Rs 47.35 on Friday last. It’s yearly high was Rs 65.

Videocon International has 6.56 lakh shareholders and its shareprice was Rs 24.80 on Friday last as compared to its 52-week high/low of Rs 48 and Rs 24 respectively.

ICICI Ltd stock closed at Rs 68.70 as compared to its yearly high/low of Rs 118 and Rs 66 respectively.

The company has a shareholder base of 5.94 lakh.

However, there are corporates with a larger shareholder-base, which have performed well on the market and have given good return to the investors (shareholders) as far as return on the investment is concerned.

These companies includes RIL (Rs 340.75 and 18.70 lakh shareholders), SBI (Rs 224, 7.89 lakh shareholders) and L&T
(Rs 219.30, 6.19 lakh shareholders).