 "At Rs 7,200 crore, Chennai Super Kings m-cap pips parent India Cements'")
A higher valuation of the new Indian Premier League (IPL) teams pushed up the market capitalisation of Chennai Super Kings (CSK), the only sports team in India whose shares are available to the general public, to over Rs 7,200 crore on Monday night. With this, the firm also surpassed its parent India Cements in terms of m-cap.
The unlisted shares of CSK were trading in the range of Rs 213-235 per share on Monday, taking its m-cap to as high as Rs 7,240 crore. This is a two-fold rise compared to Rs 65 per share at an m-cap of Rs 2,000 crore in January this year and Rs 130 per share (Rs 4,000 crore m-cap) soon after the team won the IPL title for the fourth time early this month. The m-cap of India Cements was at Rs 6,145 crore at one point on Tuesday.
On Monday, RP-Sanjiv Goenka (RPSG) Group bagged the Lucknow team for Rs 7,090 crore, while private equity firm CVC Capital Partners won Ahmedabad with a Rs 5,625-crore bid. This was much higher than the Rs 10,000 crore the BCCI was expecting from the two teams.
“If a new team like Lucknow is being formed at a valuation of Rs 7,090 crore then someone that has been a winner and has the presence of M S Dhoni cannot have a valuation of less than Rs 10,000-15,000 crore. Thus, it is already a unicorn. On Monday night, it was trading between Rs 213 and 235 per share,” said Hitesh Dhankani, co-founder of Mumbai-based financial services firm Analah Capital.
Earlier this month, Business Standard reported that CSK was on track to surpass its parent in terms of m-cap.
Dhankani expects the valuation to cross Rs 300 per share in the near future once this profit-booking phase gets over. CSK currently has 308.1 million equity shares outstanding.
The team is planning a mega celebration in Chennai in December to mark the victory and India Cements’ 75th year, an event which Tamil Nadu CM M K Stalin and his Andhra counterpart Y S Jagan Mohan Reddy are expected to attend.
The unlisted shares of CSK were trading in the range of Rs 213-235 per share on Monday, taking its m-cap to as high as Rs 7,240 crore. This is a two-fold rise compared to Rs 65 per share at an m-cap of Rs 2,000 crore in January this year and Rs 130 per share (Rs 4,000 crore m-cap) soon after the team won the IPL title for the fourth time early this month. The m-cap of India Cements was at Rs 6,145 crore at one point on Tuesday.
On Monday, RP-Sanjiv Goenka (RPSG) Group bagged the Lucknow team for Rs 7,090 crore, while private equity firm CVC Capital Partners won Ahmedabad with a Rs 5,625-crore bid. This was much higher than the Rs 10,000 crore the BCCI was expecting from the two teams.
“If a new team like Lucknow is being formed at a valuation of Rs 7,090 crore then someone that has been a winner and has the presence of M S Dhoni cannot have a valuation of less than Rs 10,000-15,000 crore. Thus, it is already a unicorn. On Monday night, it was trading between Rs 213 and 235 per share,” said Hitesh Dhankani, co-founder of Mumbai-based financial services firm Analah Capital.
Earlier this month, Business Standard reported that CSK was on track to surpass its parent in terms of m-cap.
Dhankani expects the valuation to cross Rs 300 per share in the near future once this profit-booking phase gets over. CSK currently has 308.1 million equity shares outstanding.
The team is planning a mega celebration in Chennai in December to mark the victory and India Cements’ 75th year, an event which Tamil Nadu CM M K Stalin and his Andhra counterpart Y S Jagan Mohan Reddy are expected to attend.
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