Chennai Super Kings Cricket Ltd (CSK) Unlisted Shares

Are you a cricket fan and an investor looking to own a piece of IPL history? Chennai Super Kings (CSK) is not just a cricket team; it’s an emotion for millions of fans. As the second most valuable IPL franchise in the world, CSK offers a unique investment opportunity to own shares in a team captained by the legendary Mahendra Singh Dhoni.

With a record-equalling four IPL titles, the highest win percentage among all teams, and a brand value of $1.15 billion, CSK unlisted shares are a rare asset that combines passion with potential financial returns.

Company Overview: The CSK Legacy

• Founded: 2008

• Home Ground: M.A. Chidambaram Stadium, Chennai (Chepauk)

• Captain: Mahendra Singh Dhoni

• Owner: India Cements (demerged into a separate entity)

• IPL Titles: 2010, 2011, 2018, 2021 (Four-time champions)

• Win Percentage: Highest among all IPL teams at 59.83%

The Demerger from India Cements

On September 26, 2014, India Cements approved the demerger of the Chennai Super Kings IPL franchise into a wholly-owned subsidiary.

• Effective Date: January 1, 2015

• Share Allocation: Shareholders of India Cements received 1 share of CSK for every 1 share of India Cements they held.

• Current Structure: CSK operates as an independent entity, with its shares held by former India Cements shareholders and other investors.

CSK Brand Value: A Powerhouse in Sports Business

According to the Brand Finance Report 2018, CSK was estimated to be the most valuable franchise in the IPL at $65 million.

Forbes Valuation (Recent):

• CSK Brand Value: $1.15 billion

• Ranking: Second most valued franchise after Mumbai Indians ($1.3 billion)

This massive brand value is driven by:

• A loyal fan base across Tamil Nadu and beyond

• Consistent on-field performance

• Strong sponsorship and merchandise revenue

• Massive viewership on TV and digital platforms (Hotstar, JioCinema)

Business Model: How CSK Makes Money

CSK’s revenue comes from three primary sources:

1. Central Rights from BCCI: The biggest revenue stream. BCCI distributes a share of media rights money to all franchises. The latest media rights deal (2023-27) is a game-changer.

2. Sponsorship & Merchandise: Team sponsorships, jersey sponsors, and official merchandise sales.

3. Gate Collection & In-Stadium Revenue: Ticket sales, food and beverage, and fan parks during home matches.

IPL Media Rights Windfall: A Game Changer for CSK Value

The IPL media rights auction for the 2023-27 cycle was a historic event that dramatically increases the value of all franchises.

• TV Rights (Indian Subcontinent): Sold to Star India (Disney) for ₹23,575 Crore

• Digital Rights: Sold to Viacom18 for ₹23,758 Crore

• Total Value for 410 Matches: A staggering sum, nearly 3 times the previous cycle.

Impact on CSK:

• BCCI and IPL franchises will now earn approximately ₹10,000 Crore per year .

• This revenue is shared 50:50 between BCCI and the franchises.

• This massive increase in central rights revenue directly boosts the profitability and valuation of CSK.

International Expansion: CSK’s Global Footprint

CSK is not just limited to the IPL. The management is actively expanding the brand globally.

• High-Performance Centre: CSK is developing a state-of-the-art training facility at Navallur (Chennai) with a cricket ground and sports complex for pre-match practice and cricketer development.

• South Africa T20 League (SA20): On July 13, 2022 , CSK successfully bid for a franchise in Cricket South Africa’s T20 league. The team is based in Johannesburg and participates in the SA20 tournament (January-February each year). This provides a new revenue stream and expands the CSK brand internationally.

CSK Unlisted Share Price: Historical Movement & Key Drivers

The price of CSK unlisted shares is driven by several factors, primarily the team’s performance and the league’s financial growth.

Price Movement Before and After IPL Season

• Pre-IPL Demand: Investor demand typically rises just before the IPL season starts, with hopes that CSK will perform well or win the title.

• Post-IPL Performance: If CSK wins or finishes in the top 4, the share price tends to rise due to increased brand value and future revenue potential.

• Recent Performance Impact (March 2022 vs. March 2023):

  • March 2022: ~₹225 per share

  • March 2023: ~₹180 per share

  • Reason for Dip: The share price corrected by ~20% due to a relatively poor performance by the franchise in that period, demonstrating how on-field results impact investor sentiment.

Impact of New Team Valuations

The entry of new teams has re-rated the entire IPL ecosystem.

• Lucknow Franchise (2022): Sold for a whopping ~₹7,100 Crore .

• This benchmark valuation has lifted the perceived value of existing top teams like CSK, supporting higher unlisted share prices.

CSK Unlisted Share Price: Current Valuation

• Current Unlisted Share Price (as of May 2023): ~₹160 – ₹168 per share

• Total Outstanding Shares: ~36 Crore shares

• Implied Market Capitalization: ~₹5,700 Crore

Analyst View: Compared to the ₹7,100 Crore valuation of a new team like Lucknow, CSK’s market cap of ~₹5,700 Crore appears undervalued, considering its four-time championship legacy, massive fan following, and the recent media rights windfall.

Financial Performance Review (UZ Reviews)

FY18-19: The Comeback Season

• CSK returned to IPL after a two-year suspension and won the title.

• Revenue shot up multi-fold (not comparable to 2017-18 as they didn’t play).

• Profit After Tax: ₹111.2 Crore

• Earnings Per Share (EPS): ₹3.61

• Paid-up Capital: ₹3.08 Crore

• Share Price then: ~₹26 (P/E multiple of ~7x)

FY19-20: A Dip in Profits

• Revenue: Reduced from ₹417 Cr to ₹356 Cr

• PAT: Reduced from ₹110 Cr to ₹50 Cr

• Reason: Reduction in income from central rights (BCCI) for that period.

• Investor Activity:

  • Mutual funds reduced stakes.

  • Banks and Insurance companies increased holdings.

  • Radhakishan Damani bought 17 Lakh shares in Nov-Dec 2019.

FY20-21: Pandemic Impact

• Total revenue and profit dropped due to the COVID-19 pandemic.

• Cost of operations reduced, which helped maintain some profitability.

FY21-22: Recovery & Expansion

• Expenses increased as the tournament was split into two parts and played partly outside India.

• Winning the title (4th championship) boosted revenue.

• Key Developments:

  • Announced the High-Performance Centre at Navallur.

  • Successfully bid for the Johannesburg franchise in the South Africa T20 league.

Key Investment Highlights

1. Four-Time IPL Champion: The most successful team in IPL history (tied with MI), with the highest win percentage.

2. Massive Brand Value: Valued at $1.15 billion by Forbes – the second most valuable IPL franchise.

3. Dhoni Factor: Led by one of the greatest captains in cricket history, ensuring strong fan loyalty and team performance.

4. Media Rights Windfall: The new ₹47,000+ Crore media rights deal will triple central revenue for the next 5 years.

5. International Expansion: SA20 franchise in Johannesburg opens new revenue streams and global brand presence.

6. Blue-Chip Investors: Stake held by reputed investors including Radhakishan Damani (as per FY20 data).

7. Undervalued vs. Peers: Current Mcap of ~₹5,700 Cr appears undervalued compared to new teams valued at ~₹7,100 Cr.

Risks to Consider

1. On-Field Performance Risk: Share price is directly influenced by team performance. A bad season can dampen sentiment.

2. Player Dependence: Heavily reliant on star players like Dhoni; transition post-Dhoni is a key uncertainty.

3. Regulatory Risk: BCCI rules and policies can impact franchise revenues and operations.

4. Suspension History: The team has faced suspension in the past (2015-17) due to ownership issues, highlighting regulatory risk.

5. Unlisted Liquidity: As an unlisted company, shares are not traded on stock exchanges, and liquidity may be limited.

6. Concentrated Revenue: A significant portion of revenue comes from BCCI’s central rights distribution.

Frequently Asked Questions (FAQ)

1. Is CSK listed on the stock market?
Ans. No, CSK is not listed on any stock exchange. However, its unlisted shares are available for purchase through platforms like Unlisted Network.

2. Can I buy shares of CSK?
Ans. Yes, you can easily buy CSK unlisted shares through Unlisted Network. We facilitate genuine transactions with proper documentation.

3. What is the current stock price of CSK?
Ans. As of the latest data, CSK unlisted shares are trading in the range of ₹160 – ₹180 per share. You can check the latest price on the Unlisted Network app or website.

4. Does MS Dhoni have shares in CSK?
Ans. Reports suggest that MS Dhoni has an indirect stake in CSK through his investment in Rhiti Sports, a marketing firm that manages him and has ties to the team.

5. How can I check the CSK unlisted share price?
Ans. Download the Unlisted Network Android or iOS app or visit the website to get the latest live CSK share price, historical data, and price charts.

6. Is it legal to buy CSK unlisted shares?
Ans. Yes, it is 100% legal to buy and sell unlisted shares in India through proper transfer deeds and contracts.

The Opportunity: Own a Piece of IPL History

Chennai Super Kings is more than a cricket team; it’s a cultural phenomenon. With the new media rights deal set to triple central revenue, international expansion through SA20, and a valuation that still lags behind new teams, CSK unlisted shares offer a unique blend of passion and financial opportunity.

Ready to Own a Stake in the ‘Yellow Army’?

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