Jindal Saw shares decline 4% after API suspends licence over compliance gaps

Shares of Jindal Saw Ltd. declined over 3% on Thursday, February 19, after the company said its API licence related to seamless pipes has been suspended post observations made during an audit by the American Petroleum Institute (API).Jindal Saw on Wednesday said during the API audit, certain ‘non-conformances’ (NCs) were identified, which prompted the issuance of the suspension letter. The same restricts the firm from affixing the API monogram on its API seamless pipes till the matter is resolved.

The monogram signals compliance with global oil and gas industry standards, including specifications such as API 5L for line pipes. It also certifies the firm’s quality management system (QMS), complies with API Spec Q1 as well as applicable product specifications, serving as a key mark of quality.
The suspension can potentially affect sales to oil and gas clients, which mandate API-certified products.

Jindal Saw indicated the financial impact may not be material. It said its manufacturing capacity of seamless pipes in fungible and has, for the time being, been allocated to other products pending revocation of the suspension.It said the matter is being addressed with API and that it is taking appropriate corrective measures to address the NCs. The company said it will update the stock exchanges on any material developments.

Jindal Saw manufactures iron and steel pipe, pellets for oil and gas, water and industrial uses.

Its present API licence was valid till April 6, 2026, as per the disclosure.

Shares of Jindal Saw declined 4.3% to hit an intraday low of ₹179.1 apiece. The stock has declined 11.% in the past six months.

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