CSK effect: India Cements scrip continues to downslide

Chennai, Nov 27 (IANS) The share price of cement major India Cements Ltd continued its fall to close Thursday at Rs.94.60 at the Bombay Stock Exchange.

Trading at a price of around Rs.105 Nov 21, the Rs.10 face value script had a steep fall to Rs.95.35 Tuesday and from then onwards the fall continued in a marginal way.

The scrip opened at Rs.95.50 Thursday, touched a high of Rs.98.25 during the day and closed at Rs.94.60.

The slide in the scrip's rate is due to the Supreme Court raising the issue of conflict of interest - India Cements, headed by N.Srinivasan, owns IPL team Chennai Super Kings (CSK) team and the Board of Control for Cricket in India (BCCI) also earlier headed by Srinivasan.

According to reports, the apex court had asked Srinivasan to furnish details of shareholdings of India Cements and its board composition.

In September this year, India Cements' board had approved the demerger of CSK (a division) into a wholly owned subsidiary by transferring the assets at net cost.

The effective date of transfer will be Jan 1, 2015, subject to all approvals.

Company officials had earlier said the CSK had given its cement brands good exposure in various markets. The company earned around Rs.166 crore from CSK.

India Cements had successfully bid for the Chennai franchise in 2008 for $91 million. The amount will be paid over a ten year period.