India Cements shares plunge on betting probe link, poor results

May 23, 2013, 4:49 PM EDT
Board of Control for Cricket in India (BCCI) President N. Srinivasan speaks during a news conference at their head office in Mumbai on September 27, 2012.

Shares of India Cements plunged more than 10% in Wednesday Mumbai trade on reports that the son-in-law of the company's vice-chairman, N Srinivasan, may be questioned in connection with an investigation in to a gambling and match fixing scandal that has rocked cricket's Indian Premier League. The company owns one of the IPL teams, the Chennai Super Kings, to which it has closely tied its national marketing. Some of the teams players have been indirectly connected to the scandal while Srinivasan is also chairman of the Board of Control for Cricket in India. Investors have sold off the stock since Monday when the company, India's fifth largest cement group, reported lower than expected fourth quarter results with net profit falling 60% compared to the same period a year earlier on sales 7% higher. The stock is now 30% off its 12-month high.