The latest auction of the two teams for the upcoming edition of the Indian Premier League (IPL) has unlocked the valuation of Chennai Super Kings (CSK) in the unlisted market. The recently crowned champion has been roaring high in the unlisted space, commanding a valuation of nearly Rs 7,000 crore following the sale of two new teams.

The RP-Sanjiv Goenka Group and equity investment firm CVC Capital Partners have bagged the two new Indian Premier League (IPL) franchises, the IPL Governing Council announced earlier this week. According to the official statement from the Board of Control for Cricket in India (BCCI),  RPSG Ventures made the highest bid of Rs 7,090 crore for Lucknow, Irelia Company (CVC Capital Partners) bid Rs 5,625 crore for the Ahmedabad team.

Sanjiv Goenka-owned RPSG group had previously owned Rising Pune Supergiants, a defunct IPL team, which was formed for two years along with Gujarat Lions when Chennai Super Kings and Rajasthan Royals were suspended.

Goenka also owns a franchise, named ATK Mohun Bagan, based out of Kolkata in the domestic soccer tournament Indian Super League (ISL).

BCCI was expecting to reap about Rs 10,000 crore, but surprisingly the richest cricket board in the world has a windfall of Rs 12,715 crore. Chennai Super Kings, one of the most followed IPL franchises, is likely to become the first-ever Indian sports unicorn but the current valuations fall marginally short of achieving this feat. It has raced past its parent India Cements in terms of market capitalization.

MS Dhoni-led franchise reported a profit after tax (PAT) of Rs 40.26 crore in 2020-21, which was 20 percent less than the PAT of Rs 50.33 crore clocked in the previous financial year. Investors should now focus on the upcoming broadcasting and online streaming rights for the cycle of 2023-2027. These rights may fetch Rs 36,000 crore boosting the top line of the company.

Value investor Radhakishan Damani and IPO-bound Life Insurance Corporation of India (LIC) are the key shareholders of CSK. LIC holds a 6.04 percent stake in the company, whereas Damani's stake is not disclosed in its annual report.

Barring the two bid winners, more than 20 interested parties had picked up tender documents, and nine had submitted their final bids. The list included the Adani Group, the Glazer family that owns Manchester United, Allcargo Logistics, and Ahmedabad-headquartered Torrent Group. The other bids were below Rs 5,000 crore.