Chennai Super Kings (CSK) will soon be India’s first sports unicorn when it lists its shares in the stock market. Till then, you can still dip your finger in this successful pie by buying shares from CSK employees who are willing to sell their shares. The CSK Share Price (face value) is currently Rs.0.1 per share, and the lot size is 100.
How much is CSK worth?
The CSK brand is worth Rs.732 Crores, according to Duff and Phelps, ranked 2nd after Mumbai Indians. Its total income in the FY 2020-21 is Rs. 253 Cr, and its profits after tax stood at Rs. 40 Cr, positioning it higher than most IPL teams and companies like BASF. The Earnings Per Share are expected to increase, riding on a solid sponsorship earning of Rs. 60 Cr.
What are the associated trends?
Although revenues from ticket sales fell due to the pandemic, CSK simultaneously reduced operating costs, thus maintaining healthy profitability.
Additionally, the recent decision by the Income Tax Appellate Tribunal to exempt the IPL from taxation is bound to improve its profitability in the coming year, translating to better revenue shares for the teams. Further, the inclusion of two new teams in 2022 will expand viewership and earnings.
How do you buy and sell CSK shares?
As the shares are yet unlisted, you will have to procure them from a CSK employee or an employee of its investors – India Cement Shareholders Trust, Sri Saradha Logistics Pvt Ltd, and LIC. Additionally, as it is not yet an IPO share, it will have a lock-in period of 6 months post its listing. The process of buying is as follows:
- You must contact your broker and confirm the CSK Share Pricefor trading.
- You have to provide a client master report, PAN details, and a canceled cheque for KYC purposes.
- Once the broker provides you with the recipient’s bank details, you can go ahead with the fund transfer through net banking (NEFT, RTGS, or IMPS) or via cheque. Note that you must transfer from the same account where the shares will be delivered.
- After your payment is confirmed, the shares will be deposited into your account.
If you wish to sell your shares as an employee of CSK, you can contact your broker for a client master report and a Demat account for share deposit. They will request you to share your bank details and transfer funds to you. Contact your broker regarding their share pricing policy as the process generally takes more than one day, and prices fluctuate often.
What happens if CSK does not take the IPO route?
If CSK continues to be a profitable enterprise, there will always be demand for unlisted shares, even if it does not release an initial public offering. According to current trends, the team and the IPL franchise are looking forward to a good year in terms of financial performance.
CSK’s parent entity India cements has previously owned several cricket teams and believes in letting sportspeople manage a sports team. The trustees of the CSK franchise are drawn from cricketing talent.
It is believed that minimal interference by the parent company has helped the team make sound decisions, keeping team dynamics and performance in mind. As such, CSK is a good bet both on and off the pitch.