IPL: India Cements shares fall for 7th straight day
India Cements shares declined over 3 per cent on Monday, extending their decline to the seventh straight session.
The stock traded at Rs 69.50 on the BSE as of 09.35 a.m. underperforming a 0.5 per cent gain in the broader Sensex. India Cements shares are down 22 per cent over the last seven days.
The stock has come under sharp selling pressure since the spot-fixing and betting controversies broke out in the Indian Premier League (IPL).
India Cements, the largest producer of cement in South India, is the owner of the Chennai Super Kings franchise of the IPL. The company has bought the franchise for $91 million (nearly Rs 500 crore at 1USD=Rs 55.50) in 2008.
Traders said the arrest of Gurunath Meiyappan, the son-in-law of India Cements' vice chairman and managing director N Srinivasan, by the Mumbai Police on betting charges has led to bearish sentiments in the counter. Mr Srinivasan is also the chairman of the BCCI, the body that controls cricket administration in India.
India Cement shares had crashed over 10 per cent on May 22 on reports that the Mumbai Crime Branch will summon Mr Meiyappan for questioning. The company has lost Rs 600 crore in market capitalization as its shares have dropped from Rs 87.40 on May 17, a day after Indian pacer and Rajasthan Royals player S Sreesanth was arrested by the police, to Rs 69.50 as of Monday.
The company's market capitalization stood at Rs 2,200 crore as of Friday's close. It has a turnover of around Rs 4,200 crore.
Earlier this week, India Cements had posted a 60 per cent dip its quarterly profits at Rs 26 crore.
Mr Srinivasan has refused to quit as the BCCI president, saying he has done no wrong.
