Chennai Super Kings becomes ₹ 1,000 crore company: Report

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Chennai Super Kings (CSK) valuation has more than doubled to ₹ 1,000 crores in the past 14 months. India’s only listed cricket company will reportedly earn more value when the shares are put on sale to general public.

CSK is presently trading at ₹ 30 per share market value in the unlisted market. This puts the Indian Premier League franchisees valuation at ₹ 1,000 crores, up from ₹ 450 crores in November 2018 when the company shares were valued at ₹ 14 to ₹ 15 per share. Both the figures are reported by leading business daily Economic Times.

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The three-time IPL champions CSK, only behind Mumbai Indians who have won four crowns, were registered as a company with a paid up capital of 3.1 crore at ₹ 0.10 (paisa 10) per share face value. The valuation ever since has gone up by 322 times.

“India Cements employees holding CSK shares are unsure when the listing of the company would happen and, hence, are selling shares in the grey market to pocket the profit,” ET has quoted Vyana Wealth financial service MD Abhenav Khettry as saying. “This is more of a speculative investment than a fundamental investment. Retail HNIs fond of cricket are adding this in their portfolio as it is also a low price item.”

At the end of March 2019, CSK had recorded a profit of ₹111 crores against a loss of ₹52 crores during the same period last year. It had posted revenue of ₹418 crores.

After demerging the IPL franchisees into a wholly-owned subsidiary in early 2015, India Cements had transferred the entire CSK holding to the shareholders’ trust and distributed a part of the shares to non-promoter shareholders of the company.

Duff & Phelps had reportedly valued the CSK brand at ₹732 crores last, only second to the Mumbai Indians brand, which was valued at ₹809 crores. Kolkata Knight Riders (KKR) brand was valued at ₹629 crores while the entire IPL brand carries a valuation of more than ₹48,000 crores ($6.8 billion).

Also Read: IPL 2020: Does CSK tweet hint at Dhoni’s last league season?

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