Chennai Super Kings Future at Stake after Ultratech acquires India Cements shares: Report
With one third of India Cements shares being purchased by Ultratech Cements, there has been quite a commotion in the market about what is going to be the future for team CSK in the IPL. For those who are concerned, let us get into the details a bit.
Given the past history of the team, especially conflicting issues with Ultratech in 2015, the current acquisition is likely to have no impact on the daily operations and ownership of the team.
Some Key Facts
As per Chennai Super Kings Annual Report, 2022-23, the India Cements Shareholder’s trust that held the team previously has distributed shares to eligible promoters and non promoters of India Cements. But that has now brought its stake in the team from 30 percent in 2022 to 1.76 percent in 2023.
The CSK Franchise owner N Srinivasan and his family held the majority 28.14 percent stake when he was appointed as the head of the BCCI.
Conflict of interest was the debatable factor and saw a lot of heated discussion as he was both on the leadership role of BCCI and India Cements simultaneously. After separation from the role, each Indian Cements Limited shareholder was given a proportional shareholding in the CSK franchise.
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Srinivasan’s daughter Rupa Gurunath also was appointed as the Chairman of the Tamil Nadu Cricket Association (TTPL) in 2019 while she was also a part of India Cements Limited Board. She was the first woman to take up the position and resigned in Dec 2021 after the conflict of interest issue went beyond control.
Another fact according to a report said, the trust distributed 384,882 shares of Chennai Super Kings to non-promoter shareholders of ICL and 8.67 crore shares to promoters.
The shareholders listed in the report include EWS Finance & Investments (21.47 percent), Gurunath as trustee of Financial Services & Security Service Trust (6.48 percent), N Srinivasan at 0.14 percent, Chitra Srinivasan at 0.02 percent, Rupa Gurunath at 0.01 percent, SK Ashok Balaji at 0.02 percent, and Rajam Krishnamurthy at 1940 shares.
