Ahead of IPL, CSK shares see huge demand from investors
- Indian premiere League (IPL) is set to commence next month on March 26, 2022 in Mumbai and will conclude in May
Shares of Chennai Super Kings' (CSK) have been seeing huge demand from investors in the primary market, ahead of the Indian Premier League (IPL) 2022 that is set to commence from next month. CSK is the only IPL team whose shares are available for trading.
"When the markets are bleeding, Chennai Super Kings (CSK), the only IPL team whose shares are traded in unlisted space are batting strong on the pitch. The shares which were traded at ₹70-80 a piece last year, now trades at ₹205-210 a piece generating more than 150% gains in a year," said Abhay Doshi, founder of Unlisted Arena, which deals in pre-IPO and unlisted shares.
During the IPL players’ auction, Kotak Mahindra AMC invited bids to sell one lakh shares of the unlisted Chennai Super Kings (CSK), with the bids valid for 30 days from the February 14 bid closure date, the fund house had announced.
“The upcoming IPL broadcasting rights auctions is very likely to increase the income of the BCCI and IPL teams. Moreover, easing covid situation may bring fans to stadiums which in turn will generate revenues from ticket and merchandise sales which were almost nil in last two years. The entry of new teams at higher valuations has boosted the confidence of investors in MS Dhoni led CSK which is one of the most successful team in the IPL history,” Doshi added.
Founded in 2008, the MS Dhoni-captained team has won the IPL title four times and has the highest win percentage.
"CSK is a good opportunity for traders, as its price-earning ratio (PE Ratio) is better in comparison to international sports activities franchises. It continues to grow its revenue from merchandise sales, royalties and sponsorships and has the potential to continue to generate huge money-flows in the future as well," said Ravi Singh, VP and Head of Research at Share India Securities.
Indian premiere League (IPL) is set to start from 26 March in Mumbai's stadiums this year. There will be 74 matches, and the tournament will conclude on 29 May with the finals. The league this year has two new teams, Lucknow Supergiants and Gujarat Titans.
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