CSK’s scintillating show could make it India’s first sports unicorn
Chennai Super Kings’ (CSK) superlative performance in the just-concluded Indian Premiere League (IPL) has set the high-profile franchise on course to becoming India’s first sports unicorn, says a Business Standard report.
With four IPL titles in its kitty, CSK could very well surpass market capitalisation (m-cap) of its parent company — India Cements.
CSK is the only sports team in India to have its shares exchanging hands in the grey market. The win at IPL-14 in Dubai on Friday has resulted in meteoric rise in its valuation. On Monday (October 18), CSK’s shares were trading at ₹135 each. The franchise’s m-cap stands at ₹4,200 crore at present, almost double when compared to an m-cap of ₹2,465 crore six months back. In comparison, the shares of India Cement, CSK’s parent company, were trading at ₹214.40 per share with an m-cap of around ₹6,644.20 crore, the Business Standard reported.
The media house quoted an expert to suggest that if two new franchises joining the IPL in 2022 are valued around ₹5,000 crore, then CSK’s shares could very well jump to ₹200 in the grey market.
MD of India Cements N Srinivasan told Business Standard that CSK’s m-cap would soon go past that of India Cements given the success of the team and encouragement to other sports leagues in the country.
In fact, brand CSK is actually helping the image of India Cements, said another expert. In a recent interview, given on the occasion of India Cements completing 75 years of its existence, Srinivasan had said: “Brand CSK will outgrow Brand India Cements. If you look at the history of franchise-based leagues in the US, it will outgrow everything. Passion for cricket is so much in India. The road between countries will see franchise-based leagues getting the precedence as we go along.”
Srinivasan gives the credit of the team’s success to captain MS Dhoni, who is also India Cements’ Vice-President.