NEW DELHI: Shares of cement companies plunged about 2-4 per cent as the competition watchdog initiated an investigation against alleged anti-competitive behaviour.
Shares of UltraTech, ACC and Ambuja Cement declined 1.5-3 per cent, while stocks of regional players including JK Cement and JK Lakshmi Cement fell over two per cent.
Shares of Ramco Cements (down 4.17 per cent), Dalmia Bharat (down 4.29 per cent), Heidelbergcement India (down 0.17 per cent) and Shree Cement (down 2.73 per cent) also ended in red on Thursday.
The Competition Commission of India has initiated an investigation against ACC Ltd. and Ambuja Cements Ltd., the two companies said in their exchange filings.
Both the Holcim group subsidiaries, however, said that they have acted in compliance with competition laws and are fully cooperating with the investigation and providing all necessary information to the authorities.
Reuters reported, citing unnamed people, that searches were also conducted at offices of UltraTech Cement Ltd nd two subsidiaries of the world’s largest cement maker LafargeHolcim.
The investigation comes after Roads and Highways Minister Nitin Gadkari hinted at possible “cartelisation” and “black marketing technique” in the industry.