Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / News/  India Cements looking at exiting non-core businesses
BackBack

India Cements looking at exiting non-core businesses

The company holds less than a majority stake in firms engaged in finance, securities, travel, besides an IPL team

India Cements managing director N. Srinivasan. Photo: SaiSen/Mint (SaiSen/Mint)Premium
India Cements managing director N. Srinivasan. Photo: SaiSen/Mint
(SaiSen/Mint)

Chennai: India Cements Ltd will decide on exiting non-core businesses in the next two months to enhance shareholder value.

“We have been looking at divesting stake in unrelated businesses," N. Srinivasan, managing director of the company, told reporters on Thursday in Chennai.

The stock gained 3% to 67.85 while the benchmark Sensex fell 0.25% to 19,519.49 points. On Wednesday, the share had touched a 52-week low of 65 on BSE, having dropped 8.72 % since 25 May, when the news broke of the alleged involvement of Gurunath Meiyappan, Srinivasan’s son-in-law, in the Indian Premier League (IPL) controversy.

Srinivasan was forced to step aside as president of the Board of Control for Cricket in India until an internal investigation on spot-fixing in the IPL is completed. India Cements owns IPL franchise Chennai Super Kings.

Asked whether the stake divestment review would also cover the IPL team, Srinivasan said, “We are evaluating the businesses we are in and will make an announcement when we decide."

The Chennai company holds less than a majority stake in companies engaged in unrelated businesses such as finance, securities, travel and sugar, besides the cricket team. It has 10 subsidiaries, while the shipping business set up last year and the team are a part of India Cements.

Exiting unrelated businesses will improve investor confidence, said a Mumbai-based analyst who did not want to be named.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 06 Jun 2013, 11:32 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie