Chennai Super Kings' share prices zoom in unlisted market

Three-time IPL champions Chennai Super Kings are witnessing a huge demand for their shares in the unlisted share market.

The share price of Chennai Super Kings Cricket Ltd, which owns the IPL team, has zoomed by close to 50% to Rs 92 a share in the grey market.

The bumper demand follows the team’s stellar performance in the first part of this year’s IPL tournament. The second part of the tournament will be held in UAE next month.

The team is currently ranked at the second spot after winning five out of seven matches held in India earlier this year.

With a brand value estimated at around $65 million, CSK’s shares were traded at around Rs 60 a share about two months ago. Sources in the grey market told DH that the share price could increase further in the coming days as the team heads to Dubai for the second leg of the tournament.

“We expect CSK shares to touch Rs 100 by September when IPL resumes,” says the founder of an unlisted exchange, who did not wish to be named. “This is on the back of resumption of the tournament next month,” he added.

He added that at least a few lakh shares change hands each day in the grey market.

Meanwhile, CSK’s profit after tax has come down from Rs 50 crore in the year ended March 31, 2020, to Rs 40 crore in the year ended March 2021. Its total revenue also declined from Rs 356.5 crore in FY20 to Rs 253 crore in FY21.

“The drop in total revenue and profit for the year 2020-21 compared with the previous year was mainly due to reduced revenues on account of Covid-19 pandemic,” CSK said in its annual report.

Its annual report says that the IPL team’s revenues from tournament-related income have come down drastically from Rs 42.8 crore in FY20 to Rs 3.2 crore in FY21. The sponsorship income has also come down from Rs 67.6 crore to Rs 59.62 crore.

IPL matches are scheduled to be held in UAE from the second half of September.