The deadline for Deccan Chronicle Holdings to furnish a bank guarantee of Rs 100 crore has been extended to Wednesday. The earlier deadline for the owners of IPL team Deccan Chargers was till 5 pm today.
The company's failure to furnish the guarantee money before the 5 pm deadline effectively meant that the BCCI's termination of the team stood and the board was free to float the tender for a new franchise.
However, with this development, the BCCI cannot go ahead with the termination of Deccan Chargers from the Indian Premier League (IPL).
Earlier in the day, Deccan Chronicle had announced that it is selling the franchise to Mumbai-based real estate company Kamla Landmarc for Rs 1,000 crore.
This news came as big relief for investors on Dalal Street who flocked at the DCHL counter. Just minutes after the announcement, the shares of DCHL soared to close the day gaining 4.92 per cent to Rs. 9.60 on the Bombay Stock Exchange (BSE).
In a letter to the stock exchanges, the company stated: "This is to inform you that pursuant to its meeting of the board of directors held on October 11, 2012, it was resolved to authorise the board of directors to sell, transfer/dispose of the Deccan Chargers Franchise business undertakings/business division of the Company to Kamla Landmarc Real Estate Holdings Pvt. Ltd."
"The above resolution of the board has been passed subject to the approval of the shareholders of the company under Section 293(1)(a) of the Companies Act, 1956 read with Companies, Rules 2001 and subject to the approvals, consents, permission and sanctions as may be necessary from the concerned authorities, lenders and other third parties," the letter further said.
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