Can you invest in Chennai Super Kings team?
Investing in Chennai Super Kings can be a smart choice for sports enthusiasts. The team has a great track record of on-field performance and a strong fan following, which has helped establish a powerful brand value. The team has also secured lucrative sponsorship deals, making it an attractive investment option. As cricket and the Indian Premier League continue to grow in popularity, the Chennai Super Kings are poised for long-term growth and profitability, making it a potentially profitable investment for those looking to diversify their portfolio. In summary, investing in Chennai Super Kings can be a wise move for sports enthusiasts due to the team’s consistent performance, loyal fanbase, strong brand value, and promising future prospects.
Can you invest in Chennai Super Kings – CSK – Unlisted Equity(Pre-IPO) ?
The Indian Premier League (IPL) was launched by the Board of Control for Cricket in India in 2007. Cricket teams are formed depending on the owner (franchise) and from 2008 till now IPL is played every year. Competitions are ongoing.
15 years of IPL held so far Mumbai Indians have won the trophy maximum five times while Chennai Super Kings have won the trophy four times. Kolkata Knight Riders have won the trophy twice in 2012 and 2014. Rajasthan Royals, Sunrisers Hyderabad, Deccan Chargers and Gujarat Titans have won the trophy once each.
IPL It is noteworthy that Mumbai Indians and Chennai Super Kings have been the trusted teams of fans in cricket matches for many years. The reason for this is that Sachin Tendulkar, known as Master Blaster in the early days of the Mumbai Indians team, Chennai Super Kings team, former Indian captain M.S. It was under the leadership of Dhoni.
Mumbai Indians is owned by India Win Sports and Chennai Super Kings is owned by ex-ICC. Chairman and Chairman of India Cements Mr. Srinivasan is there. India Wins Sports is a part of the Reliance Industries Group.
The current captain of the Chennai Super Kings team is M.S. Dhoni himself is coming. Former New Zealand captain Stephen Fleming is the coach. Chennai Super Kings is the first unicorn sports company in the country. A company with a value of USD One Billion (Unicorn) is called a Unicorn company.
Last 15 years of IPL Although the company has won the trophy four times in its history, the Chennai Super Kings team was caught in a cricket gambling incident in 2013 and lost the IPL for two years in 2016 and 2017. Banned from playing matches. It is noteworthy that the Rajasthan Royals team was also involved in this event.
In 2013, Brand Finance, a London-based company, selected Chennai Super Kings as one of the 150 most valuable sports teams in the world. IPL In history, Chennai Super Kings and Mumbai Indians are the teams that faced the most matches. These two teams are leading in the investment cost of buying cricketers at the auction.
Chennai Super Kings and Mumbai Indians are the only teams to have won trophies twice in the Champions League organized jointly by the Board of Control for Cricket in India, the Australian Cricket Board and the South African Cricket Board.
Generally, to list a company in the stock market, as per the Indian Companies Act, the company must be registered as a Public Limited / Listed Company. Only then did the company do its IPO in the market. Issuance of shares in the manner. Only then common people can buy shares of a company in public.
In the same way, the companies that did not issue shares in the public space but came to invest only with specific shareholders are often crawling as start-up companies today. For example companies like Zomato, Oyo, Zwiggy, Byju, BoAt.
Chennai Super Kings is the only such start-up and equity-based company that can get private investment. Almost everyone can invest in Chennai Super Kings. While the company is not listed in the stock market (Unlisted Equity).
In December 2014, Chennai Super Kings was registered as an unlisted stock investment company based in Tamil Nadu. This means that this stock is not traded in the public market. But these shares can be bought from certain investors who already own them at the price they are selling.
According to the financial year 2021-22, the value of Chennai Super Kings is 1.15 billion US dollars. In terms of shareholders’ contribution, India Cements Shareholders Trust has 30 percent shares, Sri Sarada Logistics Company has 7 percent shares and LIC India has 6 percent shares. Reliance Capital Trust Company has 2.50 percent shares and D Mart (DMart) Chairman Mr. Radha Kishan Damani also holds 2.40 percent stake. Other private companies own shares in the Chennai Super Kings team. The total number of shares in the company is about 30.81 crore (Equity Shares). As the CEO of the company, Mr. Kallidaikurichi Viswanathan Subramaniam.
The unlisted market capitalization of Chennai Super Kings is around Rs. 5,100 crores. The price of one share is trading at 180 rupees. It is necessary to buy at least one hundred shares as an investor. In the financial year 2021-22, the company’s revenue has been 341 crore rupees and the revenue growth has been 38 percent.
During the said period the expenditure of the company was 308 crore rupees and the net profit was Rs. 32 crores. The debt-equity ratio stood at 0.25 and the earnings per share (EPS) stood at 95 paise. The company’s eighth annual general meeting was held online in September 2022. At the end of March 2022, the company’s balance sheet reserves (Reserves & Surplus) are 245 crore rupees.
The value of immovable assets of the company is Rs. 130 crore (March 2022). No dividend has been declared by the company in the financial year 2021-22. No amount is allocated to the balance sheet stock of the company from the profit earned during the said period.
Chennai Super Kings is yet to announce its plans to go public. Meanwhile, the company’s income opportunities include media rights, sponsorship, advertisements, tickets for matches, watches, t-shirts and other products. Chennai Super Kings also has a subsidiary called Super Kings Ventures.
Can I invest in CSK now?
- Generally, in the stock market, while the risk nature of publicly traded company shares is high, the risk nature of such unlisted company shares is also very high. If there is any problem in the shares traded in the stock market, there is a regulatory body called SEBI to clear it. But we don’t see this in unlisted stocks.
- The large ups and downs seen in the stock market do not usually occur in unlisted company stocks. The reason for this is that only very few stocks are traded here. Sometimes (months or years) the stock does not trade at all. There must always be people to buy and sell!
- Those who have already invested heavily in the stock market and want to invest in private companies, such unlisted company stocks can consider this as an opportunity. Perhaps, when such companies come to the stock market (IPO Listed) in the future, they can sell the shares at a higher price when they have already invested. But there is no guarantee of this. The company’s financial statements and efficient management will reveal this.
- At present, very few platforms provide buying and selling facilities for unlisted company shares. We also need to check the credibility of the sites. For those who are seasoned in the stock market (more than 25 years of investment experience) and have invested heavily in the market and made profits in crores, unlisted stocks like Chennai Super Kings are a rare investment opportunity. It is beneficial for other bats to stay away from them!
“Unlisted equity is an opportunity to build wealth, but it’s always risky than listed”
Note: Investors are advised to take their investment decision in the presence of a suitable financial advisor or equity advisor before purchasing shares. The above information is only for learning fundamental analysis of stock investment.