India Cements' stock climbed over 12% in morning trade today after the company's board approved the transfer of its IPL team CSK to a wholly-owned subsidiary Chennai Super Kings Cricket Ltd.
N Srinivasan, vice chairman and managing director, on Wednesday said ownership of the IPL franchisee will go to shareholders of India Cements. He added that investors will have the option of remaining in its cement business, cricket or both.
The company's stock was trading at Rs 106.50, up by 12.11% on Bombay Stock Exchange.
Last September, the company decided to demerge Chennai Super Kings into a wholly owned subsidiary by transferring the assets at net cost. The company has earned around Rs 166 crore from CSK.
India Cements had bid for the Chennai franchise in 2008 for $91 million. The amount will be paid over a ten year period.
India Cements posted a Q3 net loss of Rs 11.68 crore as compared to Rs 0.42 crore net profit in the year-ago period due to lower capacity utilisation.
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