One of the most successful IPL franchises, Chennai Super Kings, are setting new records off the field. As per a report in The Indian Express, the shares of defending IPL champions are being traded off-market at a cost of Rs 13-15 per share.
The current off-market costing of the company is evaluated at Rs 450 crore as against the CSK brand value of USD 98 million, according to an assessment by American American Appraisal India and Duff & Phelps. CSK shares carry a face value of 10 paise for its Rs 3.1 crore paid-up capital. However, the listing of the franchise is not likely to happen any time soon.
“Many investors who got CSK shares early this week were seen selling them off-market between Rs 13-15 per share,” Narottam Dharawat, a Mumbai based broker who deals in unlisted shares is quoted as saying by Economic Times. “Savvy investors are interested in buying CSK shares.”
Another Delhi-based trader is quoted as saying that the shares are going at “Rs 12 and Rs 15.” If it is to be compared with the recent deal between JSW Sports, a unit of Sajjan Jindal-owned JSW Group, and GMR Group-owned IPL franchise Delhi Daredevils, CSK shares seem to be trading at lower levels. The Rs 450 cr evaluation, aside from being lower than the franchise’s brand value is also lesser than other teams from the Indian Premier League.
India Cements had transferred its holding of CSK to India Cements Shareholders Trust with 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 share they owned.
Chennai Super Kings was adjudged by Brand Finance to be the most valuable brand at $65 Million USD after the completion of IPL 2018 with the team lifting its third title in a dream return, tying them along with Mumbai Indians as the most successful team of IPL with three titles each.
The Economic Times commissioned UK-based Brand Finance to carry out brand evaluation of the IPL and also each of the eight franchise teams (that was increased to 10 in 2011). CSK was rated as the "most valuable team" in the Indian Premier League in 2010–11, with a brand value of $100 million (approximately ₹ 2.24 billion). In February 2013, London based Brand Finance evaluated the top 150 most valuable teams in the world, in which Chennai Super Kings is placed in the 147th place valued at $46 million just behind the Mumbai Indians.
(With inputs from The Indian Express)