Triggered by company's head N Srinivasan's son-in-law Gurunath Meiyappan involvement in IPL spot fixing scandal, India Cements has made a huge loss around Rs 500 crore in market value as its share price crashed by 21 per cent in the past one week.
The disappointing performance in the January-March 2013 quarter further aided woes to share price of the company, whose promoters also own Chennai Super Kings (CSK) team of IPL 20-20 cricket tournament.
The company has reported 59.5 per cent decline in its net profit to Rs 26.28 crore for the fourth quarter ended March 31, 2013, dented by poor demand and increase in freight charges.
On Friday, the Mumbai Police arrested Gurunath Meiyappan for his alleged involvement in betting on IPL matches, following the statement of convicted Bollywood star Bindoo Dara Singh.
Weighed down by development, shares of Chennai-based India Cements fell as much as 20.79 per cent since last Monday. The stock also hit a 52-week low of Rs 68.40 on Friday. Following the slump in share prices, the market capitalisation of the company declined to Rs 2,200 crore from Rs 458 crore.