CSK shares trading in off-market; company gets evaluation of Rs 450 crore

Defending Indian Premier League (IPL) champions Chennai Super Kings’ (CSK) stock is trading in off-market (between Rs 13 and Rs 15 a share). It has put the company’s evaluation around Rs 450 crore as against its brand value of $98 million (Rs 691 crore). Brand CSK was valued at $98 million by American Appraisal India and Duff and Phelps.

According to a report in Economic Times, the shares in the CSK equity, transferred to the 94,000 retail householders of India Cements, the parent company, earlier this week, have been changing hands at Rs 13-15 apiece. The report quoted at least four people who deal in unlisted stocks.

“Many investors who got CSK shares early this week were seen selling them off market between Rs 13-15 per share,” Narottam Dharawat, a Mumbai-based broker who deals in unlisted shares was quoted as saying by the Economic Times. “Savvy investors are interested in buying CSK shares.”

“Nearly 4 lakh shares changed hands in the last two days at a price between Rs 12 and Rs 15,” Delhi-based unlisted shares trader Anil Goel was quoted as saying by the same newspaper. “Shares are trading at lower level because of CSK’s tainted history.”

Sambhav Aggarwal, director of ARMS Securities, Delhi, which deals in unlisted shares said there is a good demand for CSK shares in off-market since it is currently trading at a discount to its brand value. “On Thursday, shares were traded at around Rs 14 per share,” he said.

The transfer of the stocks to the retail shareholders is also being seen as an effort to list Chennai Super Kings Cricket in the stock market. However, people privy to the matter have reportedly said that this might not take shape immediately.

Lower values because of tainted past, say experts

Experts attributed the CSK’s lower values to their tainted past as the Chennai-based franchise remained suspended for the 2016 and 2017 editions for suspected betting activities though they returned in 2018 to lift their third title under the leadership of Mahendra Singh Dhoni. Rajasthan Royals was the other team which was also suspended for the same reason and made their comeback this year.

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