Shares of BC Jindal Group-owned Jindal Photo Ltd climbed 9.9% on Friday, building on Thursday’s 20% surge after hitting the upper circuit limit. The sharp rally comes amid growing investor interest tied to developments in a class-action lawsuit currently under review at the National Company Law Tribunal (NCLT) in Delhi, according to market analysts.
Three other group entities saw mixed moves. Jindal Poly Investments rose 2.1%, adding to Thursday’s 17% jump. Jindal Worldwide and Jindal Poly Films Ltd (JPFL), however, slipped about 1% each after gaining 11% and 12.5%, respectively, in the previous session.
The surge in these stocks was triggered by arguments presented in what is being described as India’s first-ever class-action case, centred around allegations that promoters siphoned ₹2,780 crore from JPFL to other group firms.
Given the lack of precedent for such actions in Indian courts, the case has sparked significant interest among legal professionals and family-run business groups.
A previous class-action attempt involving ICICI Securities and its delisting process was dismissed by the Supreme Court.
Abhinav Vasisht of Saraf & Partners argued for the petitioners, citing material evidence including undervalued asset sales and the ED’s ongoing investigation. UK Chaudhary of JSA appeared for JPFL, while senior advocate Sunil Fernandes represented Jindal India Powertech.
The NCLT bench adjourned the matter to October 15 for further submissions on the maintainability of the petition and applicability of US class-action principles. The outcome, legal experts say, could shape the future of class-action litigation in India.