Recently, there has been an acquisition concerning UltraTech Cement buying India Cements which is giving rise to questions about the impact on the IPL team Chennai Super Kings (CSK). Although team CSK and India Cements have a common promoter, India Cements does not own the Chennai Super Kings team directly. So, it means that the acquisition of UltraTech Cement buying India Cements will not impact its IPL team CSK (not directly! But indirectly for sure).
UltraTech acquisition over India Cements
Of late, UltraTech Cement has come up with ideas about acquiring a bulk share in India Cements which is undoubtedly India’s largest and most popular cement manufacturing company at an astonishing sky-high price of $120.76 per tonne.
In addition to that, the board of directors also considered and agreed to buy a 32.74% equity stake of the promoters as well as their business associates in India Cements Ltd, which has its regulatory approvals pending.
The 32.74% of India Cements equity stake means that the UltraTech Cement will be paying a jaw-dropping Rs 3,954 crore (or else Rs 390 per share).
This acquisition from N Srinivasan (owner of India Cements), now Kumar Mangalam Birla (owner of the Aditya Birla group and UltraTech Cements) further solidifies his firm’s position as India’s leading construction supplies manufacturer.
Now after this acquisition, most of them are confused about the fate of Indian Premier League’s most successful franchise CSK (Chennai Super Kings) and MS Dhoni.
CSK will have a Positive Impact
Although both the entities namely Chennai Super Kings and India Cements are owned by the same person Mr. N Srinivasan, and in 2015 CSK demerged from India Cements. The only difference that we could see is that India Cements is publicly listed and traded on the stock market, whereas on the other hand, CSK is not listed.
Because CSK and India Cements share the same common promoters, it doesn’t mean CSK will be affected. People have got it the wrong way and need to clear themselves that India Cements does not own the Chennai Super Kings team directly. So, even if the UltraTech Cement is buying India Cements, it is not going to impact the CSK team.
Earlier, Chennai Super Kings had loaned a sum of Rupees 185 crores to India Cements and from that time onwards the India Cements company was leveraged with a fear that the CSK franchise would have to keep supporting them further. But now the main advantage is that fear will disappear after the UltraTech cements acquisition.
Most importantly, a 28.45% stake of India Cements promoters was held where it had to pledge around 47.49%. But now after the UltraTech deal, the financial health will become stronger and India Cements will improvise. In addition to that the promoter’s pledge will be released and thereafter India Cements will have more resources that can be solely dedicated to the CSK franchise and team for further improvements.
MS Dhoni’s future relationship with Chennai Super Kings
The BCCI (Board of Control for Cricket in India) is set to meet IPL team owners on 31st July 2024 in Mumbai, to discuss retention policies, RTM options, and many more crucial enhancements. Rupa Gurunath, belonging to the Srinivasan family will be attending this extremely important meeting.
Also, according to the discussions between N Srinivasan and MS Dhoni, if the Indian Premier League allows and gives permission for 5 or 6-player retentions, it is certain that MS Dhoni might continue playing. Whereas, other possible candidates for the retention of the Chennai Super Kings for IPL 2025 are Ruturaj Gaikwad, Ravindra Jadeja, Matheesha Pathirana, and Shivam Dube.
According to recent reports, MS Dhoni’s future with the CSK team and his playing will be completely based on the allowed or permitted number of retentions in the IPL 2025. In case, the number of retentions is limited, then MS Dhoni will not be continuing as a player and probably will shift his role as a mentor within the Chennai Super Kings team.
So, the final outcome will be based on BCCI’s crucial meeting on 31st July with IPL team owners, and only that will determine MS Dhoni’s future with the glorious CSK team.
MS Dhoni will continue to be Vice President of India Cements
MS Dhoni’s position as the Vice President of India Cements will not change, and he will continue to hold that position. In addition to that, Indian Cements also employed other popular cricketers like Ravichandran Ashwin and Rahul Dravid.
Therefore, Dhoni’s future with CSK team is completely regarding the number of retentions only and has nothing to do with the acquisition deal between UtlraTech Cements and India Cements company.
