Caught in the middle of IPL spot-fixing scandal, N. Srinivasan-led India Cements has lost about Rs 500 crore in market value as its share price slumped by 21 per cent over the past one week.
A disappointing set of January-March 2013 quarter results has further aided to the plunge in the share price of the company, whose promoters also own Chennai Super Kings (CSK) team of IPL 20—20 cricket tournament.
Gurunath Meiyappan, Srinivasan’s son-in-law and CSK team chief, was arrested on Friday for his alleged involvement in betting on IPL matches.
Shares of Chennai-based India Cements have crashed by 20.79 per cent since last Monday. The stock also hit a 52-week low of Rs 68.40 on Friday.
Following the sharp fall in the stock, the market capitalisation of the company tumbled Rs 458 crore to Rs 2,200 crore.
India Cements last Monday announced its quarterly results, reporting 59.5 per cent slump in net profit to Rs 26.28 crore for the fourth quarter ended March 31, 2013, mainly due to poor demand and increase in freight charges.
“The stock has seen sharp cut in a knee-jerk reaction to the negative news outflow of spot-fixing allegations. Also, weak Q4 results added fuel to the fire. The stock will bottom out in the near future,” CNI Research Managing Director Kishor P Ostwal said.
India Cements had distanced itself from Meiyappan soon after his name cropped up in IPL spot-fixing case.
35-year-old Gurunath was summoned by Mumbai Police for questioning after actor Vindoo Dara Singh named him in the betting matter.