- Kotak Mahindra AMC invited bids for one lakh shares of Chennai Super Kings Cricket Limited on the eve of IPL (Indian Premier League) players’ auction that happened on Saturday.
- In January 2022 its valuation reached the ₹7600 Cr mark, making it a unicorn.
- A week ago, on February 11th 2022, the company’s share prices soared over 1,000 per cent since its demerger, to ₹215 per share in the unlisted market.
The Mahendra Singh Dhoni led Chennai Super Kings won a total of 4 IPL titles, in 2010, 2011, 2018 and 2021. In January 2022 its valuation reached the ₹7600 Cr mark, making it a unicorn. It is one of the most valuable IPL franchises and the only one to be changing hands in the grey market.
Chennai Super Kings Cricket Limited, The company that controls team CSK got demerged from its parent company India Cements Limited a couple of years ago.
Usually, it is observed that demerged companies get listed on the stock exchanges. There was intense speculation in the media regarding its listing, but CSKs shares have remained unlisted. Investors have also followed up and CSK is in Compliance with SEBI’s regulations.
CSKs shares were allotted to the Kotak Mahindra AMC when the shares during the demerger and the scheme was approved by all the regulatory authorities.
Kotak Mahindra AMC invited bids for one lakh shares of Chennai Super Kings Cricket Limited which controls the cricket team Chennai Super Kings. This happened on the eve of the IPL (Indian Premier League) players’ auction that happened on Saturday.
CSK is unlisted and in the absence of trading prices, Kotak Mahindra AMC opted for the bidding route to offload a part of the holding for price discovery in a transparent manner. Also, this will help to establish the valuation of these shares.
A week ago, on February 11th 2022, the company’s share prices soared over 1,000 per cent since its demerger, to ₹215 per share in the unlisted market. Its market capitalization has exceeded the market capitalization of India Cements Limited, its parent company.
A big trigger for CSK’s stocks to rally could be media rights for TV and digital telecast of IPL for 2023-2027.
“Brand CSK will outgrow Brand India Cements. If you look at the history of franchise-based leagues in the US, it will outgrow everything. Passion for cricket is so much in India. The road between countries will see franchise-based leagues getting precedence as we go along, ” said N. Srinivasan, the managing director of India Cements and former president of the Board of Control for Cricket in India (BCCI) in January, this year when the share price had crossed the ₹220 mark.
CSK Limited reported a profit of ₹40.26 crores and revenue of 253.69 crores for the year ended 31st March 2021. These figures were lower than the preceding year. The authorised share capital of the company was raised from ₹ 3,13,16,000 (divided into 31,31,60,000 equity shares of 10 paise each) to ₹6,00,00,000 (divided into 60,00,00,000 equity shares of 10 paise each).
Its revenue comes from a lot of sources including sponsorship, sale of merchandise, in-stadium advertising, 80% of the collection from the sale of tickets, and finally 45% of the amount that goes to a central pool for selling media rights to broadcasters, money from title sponsors and cosponsors and 20% revenue from gate fees.
Generally, when investors want to buy shares of private companies, they buy them from brokers who in turn buy them from employees of the unlisted company. Financial intermediaries like the ones mentioned below help investors to invest in unlisted equity, private equity, Pre IPO shares, ESOP shares and more.
In a statement, Kotak Mahindra AMC said that the last date for submission of the bid is February 14 and the price quoted by the bidders will be valid for 30 days from the bid closure date. Intermediaries like Unlisted Zone, Unlisted Deal, and Rurash, were able to submit their bids to acquire these shares.
It is great to know that investors can buy the shares related to their favourite IPL team. Even if they haven’t placed their bids, it is possible to buy these shares from intermediaries like TradeUnlisted, Analah Capital, and Unlistedkart. They can also be bought from investors who already have these shares.
