The Chennai Super Kings shares are thriving on the speculation surrounding Indian Premier League (IPL 2020) season this year. The BCCI has currently postponed the IPL 2020 season indefinitely. But the speculation surrounding the start of the league has made CSK’S shareholders richer by almost 50% since the end of April.
IPL 2020 postponement led to fall of 25% for the CSK’S shares
At the start of the year 2020, the shares for CSK were being traded at Rs. 30 in the grey market. The day it was announced that IPL 2020 is being suspended till 15th April 2020, the shares of CSK dipped to Rs. 21-22 levels.
Backed by extremely loyal fan base, CSK has been able to monetize its commercial assets much better than most of the other IPL teams. CSK’S revenues in 2019 stood at 418 Crore with a profit of 110 Crore. In 2018 had reported a loss of 52 crore for the same period. This had led to the increase in the share price and valuations of CSK. But the IPL 2020 uncertainty is hitting CSK hard.