No impact on CSK ownership in UltraTech Cement and India Cements deal: Reports
UltraTech Cement Ltd's board approved the purchase of a 32.72% stake in India Cements Ltd from its promoter and their associates
The ownership of the Indian Premier League (IPL) cricket team Chennai Super Kings (CSK) will remain unaffected after India Cements promoters N. Srinivasan and his family, sell their stake in the cement maker to Aditya Birla Group’s UltraTech Cement.
The owner of CSK has been India Cements promoter N. Srinivasan.
In a stock Exchange filing on Sunday, UltraTech Cement Ltd's board approved the purchase of a 32.72% stake in India Cements Ltd from its promoter and their associates. Previously, in June, UltraTech had added a 22.77% stake at Rs 268 per share.
With the latest development, the transaction has totalled Rs 3,954 crore at Rs 390 per share, with ownership of UltraTech climbing to 55.49% in India Cements.
According to Moneycontrol, the transaction will have no impact on the controlling shareholding of the CSK. The promoters' shares in India Cements now stand at 28.14%.
As per the 2023 annual report of the CSK, it has seven promoters: EWS Finance and Investments (21.47%), Rupa Gurunath as trustee of the Financial Services Trust and Securities Services Trust (6.48%), N. Srinivasan (0.14%), Chitra Srinivasan (0.02%), Rupa Gurunath (0.01%), SK Ashok Baalaje (0.02%), and Rajam Krishnamurthy (1,940 shares).
India Cements Shareholders Trust's stake fell following the distribution of 384,882 CSK shares to non-promoter shareholders of India Cements and 86.7 million shares to promoters of India Cements, MoneyControl added.
CSK was created in 2008 as a division of India Cements. However, in 2015, the cement maker hived off CSK as an independent company by selling its entire holding in CS to a trust called India Cements Shareholder Trust, which was to be controlled by three independent directors of India Cements.
And, in FY23, the trust distributed the CSK shares to promoter and non-promoter shareholders of India Cements.
CSK is one of the most successful IPL franchises. The cricket team has won five IPL titles, the same as Mumbai Indians. Besides, Super Kings have also won the Champions League Twenty20 twice, in 2010 and 2014.
