One of the leading Cement manufacturers in India and the official sponsor of the IPL franchise Chennai Super Kings slumps 7 percent in the day’s trade after an alleged foreign exchange violation.
With a market capitalization of Rs. 7,550 Crores, the shares of India Cements Limited were trading at Rs. 243.20, down 6.96 percent from its previous day’s close price of Rs. 261.40. Ace Investor Radhakishan S Damani holds a 12.68 percent stake in the company.
India Cements declined 7 percent in the day’s trade after news came out that the Enforcement Directorate has conducted searches at its offices as part of a foreign exchange violation investigation, as per the sources.
In addition to this, the sources also say that 2 office premises of the company in Chennai and one in Delhi were covered by the federal probe agency over the last two days, as per provisions of the Foreign Exchange Management Act (FEMA).
The probe pertains to the affairs of its associate company India Cements Capital Limited and the transfer of funds worth about Rs 550 crore abroad, they said.
India Cements Limited is one of the leading players in the cement sector, engaged in the business of manufacturing and marketing cement and cement-related products. It is also the official sponsor of IPL Franchise Chennai Super Kings.
Its revenue from operations grew 15.43 percent from Rs. 4,858 Crores in FY22 to Rs. 5,608 Crores in FY23, accompanied by a profit of Rs. 87 Crores to a loss of Rs. 125 Crores.
Written by: Bharath K.S
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