Shares of India Cements on Tuesday saw a selling pressure, ending the day with nearly 4 per cent losses, after its franchisee Chennai Super Kings was suspended from IPL for a period of two years.
Selling intensified at the counter following the news and the stock tumbled 6.31 per cent to Rs 88.25 during the day on the BSE. It finally settled at Rs 90.75, down 3.66 per cent.
On the NSE, shares of India Cements went down by 3.76 per cent to close the day at Rs 90.70.
The company’s market value fell by Rs 105.35 crore to Rs 2,787.65 crore.
On the volume front, 16.80 lakh shares of the company changed hands at the BSE and over one crore shares were traded at the NSE during the day.
“Shares of India Cements dropped more than 6.5 per cent in the day after the SC order banning its franchisee CSK from IPL for the next two years,” said Hiren Dhakan, Associate Fund Manager, Bonanza Portfolio Ltd.
Star-studded Chennai Super Kings, two-time champions in the IPL, and Rajasthan Royals were today suspended from the cash-rich cricket league for two years for the betting activities of their key officials Gurunath Meiyappan and Raj Kundra during the 2013 season.
Meiyappan, the former Team Principal of CSK, and Kundra, co-owner of Rajasthan Royals, were suspended for life for indulging in betting and bringing the IPL and the game into disrepute.
The punishment was handed down by a Supreme Court- appointed three-member committee, headed by former Chief Justice of India R M Lodha, putting a spanner on the high- profile T20 league, which began in 2008.
The Committee was constituted by the Supreme Court in January this year with its terms of reference being to announce the quantum of punishment against Meiyappan, Kundra and the two franchisees — India Cements Ltd, owner of CSK and Jaipur IPL, owner of Rajasthan Royals.