The Chennai Super Kings (CSK) is a franchise cricket team based in Chennai, Tamilnadu which plays in the Indian Premier League (IPL).Founded in 2008, the team plays its home matches at the M.A Chidambaram in Chennai. After serving a two-year suspension from the IPL starting July 2015 for the alleged involvement of their owners in the 2013 IPL betting case the Chennai Super Kings returned to the league in 2018, winning the championship in the comeback season, it's third overall to tie Mumbai Indian for the record for most IPL title wins. The team is captained by Mahendra Singh Dhoni.
The brand value of the Super Kings in 2018 was estimated at $65 million, making them the most valuable franchise in the IPL as per the Brand Finance Report.
One of the major boosts for IPL this year, as per the Brand Finance report, was not just television viewership which grew by 11%, but also the fact that over 200 million people watched the tournament on digital platforms such as Hotstar. "Cricket enthusiasts who did not get tickets to see the games live could watch the competition in specially designated Fan Parks in 36 cities across the country. Family-friendly and free to attend for all, Fan Parks offered music, entertainment, and a range of merchandise stalls, bringing stadium atmosphere to city centers on a scale larger than ever," points out the Brand Finance report.
The India Cement on 26.09.2014 approved a demerger of Chennai Super Kings a BCCI-IPL Franchise 20/20 Cricket Tournament Team into a wholly-owned subsidiary by transferring its net assets at cost. So with effect from 01.01.2015, a new wholly-owned subsidiary will get incorporated. The shareholders of CSK will get one share of CSK for every one share of India Cement.
India Cements had transferred its holding of CSK to India Cements Shareholders Trust on October 9, 2015, as the date fixed for allotment of the shares. The shareholders of the company were allotted a share each for every India Cements shares they owned. However, since that time period, CSK, along with Rajasthan Royals had to serve a two-year suspension due to respective team principals Gurunath Meiyappan and Raj Kundra being found to be involved in the suspicious betting activity.
To check CSK Share Price movement, you should download our Android App where you will get the last traded CSK share price along with the last traded price of other unlisted shares. In the UnlistedZone app, you can also check the historical CSK Share Price. It's a free app that you can download from Playstore. Another way to check CSK Share price is to register on UnlistedZone.live website. There also you can get the last trade CSK Share price along with its historical graph as shown below:
If you have seen our last Webinar, we have discussed in detail how price movement occurs in the unlisted shares prices in the short-term and the long-term. We have explained how demand and supply plays an important role in the short-term in determining the price of unlisted shares. On that similar line, from the last 3 years, we have seen how CSK Share Price rises before the start of IPL season and then subdued after IPL finishes based on demand and supply.
The track record of CSK is best in the IPL and the Super Kings have won the IPL title four times (in 2010, 2011, 2018, and 2021), and have the highest win percentage of matches among all teams in the IPL (59.83%). Seeing the past glory of CSK the demand for the unlisted shares increases just before the start of IPL, as investors presume that CSK may either win the tournament or atleast finishes in the top 4. And, we have seen whenever CSK either wins or finishes in the top-4, the CSK Share price rises in the unlisted market.
The analogy is very simple, if you see the business model of IPL, if team performs well, their rating and brand value increases, which ultimately increases the valuation or per share value of the team. And, if CSK wins an IPL, that will add more value to the CSK Share Price.
In the unlisted market, only CSK Unlisted Shares are available. So, if anyone wants to be a part of the success of the IPL, they will have to buy unlisted shares of CSK And, that is why investors are flocking to buy unlisted shares of CSK before IPL 2022 season and the number of queries asking CSK Share Price are also increasing.
In the last past 6 months, the CSK Share Price or valuation has soared and reached to a unicorn club thanks to the new team of Lucknow which was sold in the IPL at whopping ~7100 Crores. This shows how much bidders are willing to pay to buy the team in the IPL.
Next season of IPL is starting from 02 April 2022 and we have already seen that the demand is rising for the CSK Unlisted Shares among investors. Another reason why investors are buying CSK Unlisted Share is the auction of Media and Broadcasting rights which is about to happen. Based on demand generated among bidders for media and broadcasting rights, the CSK Share Price may rise further in the unlisted market.
Last 1 year CSK Unlisted Share Price Movement
Looking at the top companies in unlisted space, you will find most of the Companies have lost their shares values upto 50% in the last one year and CSK was no different. However, CSK was less impacted compared to other Companies. The per share price of CSK in March 2022 was approximately Rs. 225 which is now being traded around Rs. 180. In the last one year, the franchise has lost 20% of its share value.
The fall in the share price of CSK could be attributed to the poor performance of the franchise in the IPL which lowered the demand for the share of the franchise resulting in a drop in the share price.
Current Valuation of CSK Unlisted Share Price in the market
According to Forbes, the CSK brand is worth $1.15 billion. CSK is the second most valued franchise after Mumbai Indians whose valuation stands at a whopping $1.3 billion.
In the unlisted market CSK Unlisted Share Price is ₹160 per share and with outstanding shares ~36 Cr, the Mcap is ~5700 Crores which looks undervalued as compared to last team sold in the market.
Chennai Super Kings (CSK) IPO News
CSK is not listed at the stock exchanges and the shares of the Company are not publicly traded. The franchise has not shown any interest to raise funds from the stock market as they do not need any fund to run the franchisee.
1. Is CSK listed in stock market? Ans. No, CSK is currently not listed in the stock market. Though its unlisted shares are available in the market, which you can easily buy with India's leading unlisted platform i.e. Unlistedzone
2. Can I buy shares of CSK? Ans. Yes, you can easily buy CSK unlisted shares at the UnlistedZone platform.
3. What is the stock price of CSK? Ans. As of 03.May.2023, CSK unlisted share price is trading at ₹168 per share in the market.
4. Does Dhoni have shares in CSK? Ans. Yes, some of the reports state that Mahendra Singh Dhoni have bought 15% stake in sports marketing firm Rhiti that manages him and Chennai Super Kings
5. How can I check CSK Unlisted Share Price? Ans. You can check CSK Unlisted Share Price at UnlistedZone Website or UnlistedZone App Note: Check the Latest CSK Unlisted Share Price at UnlisteZone Android or iOS Mobile App.
UZ Review FY18-19
1. In the year 2018-19, CSK Financials in form of Sponsorship rights, Central Rights, and Gate collection have shot up which has increased the revenue multi-folds. In 2017, the Chennai Super Kings didn't participate in the IPL due to corruption issues that is why the revenue of 2018-19 can't be compared with 2017-18.
2. The company has clocked a profit of 111.2 cr in FY18-19.
3. The paid-up capital is 3.0815 Cr, as on 31.03.2019.
4. The company has clocked an EPS of 3.61 in FY18-19. Currently, the stock is trading at P/E multiple of 7x.
5. Mcap of Chennai Super King at Unlisted Market rate of Rs. 26 is 801 Cr. In 2014, the Chennai Super Kings sold to India cement at ~600 Cr Valuation.
6. The company has some key investors and the same is available in the shareholding pattern as mentioned above.
UZ Review 2019-20
1. This year the revenue has reduced from 417 Crores to 356 Crores mainly on account of reduction of income from grant of central rights from Board of Control for Cricket in India (BCCI). Accordingly, the PAT has also gone down from 110 Crores to 50 Crores.
2. In the year FY19-20, Mutual funds has reduced their stakes from 10808230 shares to 3078949.
3. In the year FY19-20, Banks and Insurance companies have increased their stakes 775406 and 21918038 to 775456 and 22068038, respectively.
4. Radhakishan Damani has bought 17 Lakhs shares in the month of Nov and Dec-19.
UZ Review in FY20-21
1. On examining the CSK Financials of Fy20-21, there is a drop in total revenue and profit for the year 2020-21 compared with the previous year. It has happened mainly due to reduced revenues on account of COVID 19 pandemic.
2. Cost of operations has also reduced from Rs.256 Crores to Rs.180 Crores on account pandemic which has helped maintain profitability.
UZ Review of FY21-22
1. The expenses has increased this year IPL as the tournament was split into two parts, and the second part of the competition took place outside of the country, both of which contributed to an increase in expenses for the period under consideration. The fact that the team ultimately prevailed led to an increase in revenue as well.
2. The Company is planning to create a High-Performance Centre on its land at Navallur for providing state of art training facilities to cricketers and sports persons. The training facility will also have a sports complex and a cricket ground for Chennai Super Kings to have their pre-match practice sessions.
3. The Company submitted a bid on 13th July 2022 to acquire a franchisee in the T20 domestic league conducted by Cricket South Africa, pursuant to which, a license was granted for participating in the league in the city of Johannesburg. The 1st edition of the tournament is likely to take place in January and February 2023.
The outlook of IPL:
a) IPL witnessed a major milestone on 2021-22, for instance, television rights for the Indian subcontinent have been sold for Rs 23,575 crore to The Walt Disney Company India owned Star, while the digital rights have been bagged by Viacom18 for Rs 23,758 crore for 410 matches. So, an increase of almost 3x in the revenues for the next 5 years as compared to last 5 years rights income.
b) Each year BCCI and IPL franchises will earn ~10000 Crores. 50% will be distributed among teams and 50% will go to BCCI.
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