India Cements shares dive 9% on reports of ED search for FEMA violations

Shares of India Cements Ltd tanked more than 9 per cent during the trading session on Thursday amid the reports of Enforcement Directorate (ED) searches at the company premises in Chennai. India Cements is led by N Srinivasan the former BCCI Chairman.

According to the media reports, ED has been searching the company for Foreign Exchange Management Act (FEMA) Violations. The media reports added that the ED is expecting FEMA violations of around Rs 250-300 crore, which may increase as the search progresses. However, the company has not made any comments on the matter yet.

Shares of India Cements tumbled 9.4 per cent to Rs 236.85 on Thursday, with its total market capitalization falling below Rs 7,500 crore mark. The scrip had settled at Rs 261.35 in the previous trading session on Wednesday. However, the stock made partial recovery as the session progressed.

The counter witnessed heavy trading volumes on both exchanges. On BSE, more than 7.30 lakh shares of India Cements, worth Rs 18.06 crore were traded as of 11 am. On an average, 1.85 lakh shares per day were traded in the last two weeks. On NSE, 1.82 crore shares amounting to more than Rs 446 crore exchanged hands as of the same time.

Interestingly, the company board of directors are scheduled to meet on Thursday, February 1, 2024 to consider and approve the standalone and consolidated unaudited financial results for the quarter and nine months ended December 31, 2023, said the company in an exchange filing with the bourses earlier.

In continuation to the board meeting, the senior management team of India Cements will have a conference call with the representatives of the various investors/analysts on the same day at 2.30 PM to discuss the said financial results, being organised by PhilipCapital (India), it added in a separate exchange filing.

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