DCHL up 5% despite failing to provide bank guarantee

Shares of Deccan Chronicle Holdings (DCHL) locked at 5 percent upper circuit after the board of directors have approved sale of IPL team Deccan Chargers to Mumbai based real estate firm Kamla Landmarc.

DCHL has authorised the board to sell the franchise.

“Pursuant to its meeting of the board of directors held on October 11, it was resolved to authorise the board of directors to sell, transfer or dispose of the Deccan Chargers franchise business undertaking, business division of the company to Kamla Landmarc Real Estate Holdings Private Limited,” DCHL said in a filing to the BSE.

The company said it has approved the draft memorandum of understanding placed before the board of directors at its October 11 meeting.

The company, however, did not disclose the details of the financial transaction.

The resolution of the board has been passed subject to the approval of DCHL shareholders, it said.

However, Deccan Chargers has failed to provide bank guarantee (BG) to Board of Control for Cricket in India. Even the Bombay HC, which already extended by three days till Friday earlier, has denied further extension to Deccan Chargers for BG payment.

At 14:25 hours IST, Deccan Chronicle Holdings was trading at Rs 9.60, up 4.92%. There were pending buy orders of 197,774 shares, with no sellers available.
 
Market capitalisation of the company currently stands at Rs 200.61 crore.

(With inputs from PTI)