Mumbai: India Cements
shares saw huge selling pressure on Tuesday, falling 6.5 per cent,
after the company's franchisee Chennai Super Kings was suspended from
the Indian Premier League (IPL) for a period of two years.Reversing its positive opening, the stock fell sharply by 6.31 per cent to Rs 88.25 on the BSE.
Chennai Super Kings and Rajasthan Royals were on Tuesday suspended from the cash-rich cricket league for two years for betting activities of their key officials Gurunath Meiyappan and Raj Kundra during the 2013 season.
The punishment was handed down by a Supreme Court-appointed three-member committee, headed by former CJI R M Lodha, which held that betting activities of the two officials, Mr Meiyappan, considered the face of CSK owners, and Mr Kundra, co-owner of Rajasthan Royals, have brought the game of cricket, the Board of Control for Cricket in India (BCCI) and IPL into disrepute.
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 Mr Meiyappan, Mr Kundra and the two franchisees - India Cements Ltd, owner of CSK, and Jaipur IPL, owner of Rajasthan Royals.
Under the rules of IPL, the franchise of a team can be cancelled if a team official indulges in any act that brings the game to disrepute.
As of 2:36 p.m., shares in India Cements were trading over 3 per cent lower at Rs 91 apiece on the BSE, underperforming the broader markets.
