Amid IPL 2020 speculations, Chennai Super Kings shares jumps 50%

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.

Such has been the demand in the market for the CSK’S shares that from Rs. 20-22 price band, now the shares are being traded at Rs. 34-35 price band in the grey market. This means in the last 3 months shareholders in the team captained by MS Dhoni has gained 50% even without any finalization of IPL 2020 dates. 
 
CSK shares have gained by 50% in last 3 months
 
As reported by InsideSport earlier in the month of March-April, in the grey market the CSK shares saw steep fall as news of postponement of IPL 2020 came in. But after that it has been one way traffic for CSK’s shares in the off-market for trading in unlisted shares. 
 
Also Read : Cricket Business: CSK shares dip further in grey market as uncertainty on IPL 2020 continues

Reason, through the IPL 2020 season is under threat, but as soon as some positive news about the league comes in, CSK’s shares respond to the speculation. Be it the news about possible postponement of the T20 World Cup or some positive statement by BCCI or any other stakeholder of IPL, according to a report CSK’S shareholders are getting benefited enormously because of all the speculation surrounding IPL. 
 
Some of the dealers in unlisted shares expect the stock to rise a further 50 per cent, if the tournament sees the light of the day. 
 
“If the IPL does take place this year, the scrip may rise to Rs 45-50 levels, considering the euphoria in the secondary markets and quality of the stock,” said Rajan Mali of Unlisted Zone to ET. 
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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.