INSUBCONTINENT EXCLUSIVE:
MUMBAI: Investors are lapping up shares of Indian Premier League (IPL) team Chennai Super Kings Cricket in off-market transactions
CSK equity, which was transferred to the 94,000 retail shareholders of parent India Cements earlier this week, has been changing hands at Rs
13-15 apiece, according to four people who deal in unlisted stocks
The listing of CSK may not happen immediately, said people with knowledge of the matter.
At current off-market price, the company is valued
at around Rs 450 crore as against the CSK brand value of $98 million (about Rs 700 crore) as per a valuation by American Appraisal India and
CSK shares carry a face value of 10 paise
The company has Rs 3.1 crore paid-up capital.
“Many investors who got CSK shares early this week were seen selling them off market between
Rs 13-15 per share,” said Narottam Dharawat, a Mumbaibased broker who deals in unlisted shares
“Savvy investors are interested in buying CSK shares.”
However, compared with the recent deal between JSW Sports, a unit of Sajjan
Jindal-owned JSW Group, and GMR Group-owned IPL franchise Delhi Daredevils, CSK shares seem to be trading at lower levels, possibly due to
its checkered past, said brokers
Also, there is no immediate or easy exit option for those buying shares off market currently, they added
JSW is said to have acquired a 50 per cent stake in Delhi Daredevils for about Rs 550 crore.
India Cements spun off its IPL franchise into a
wholly owned subsidiary in early 2015.
The company first transferred its holding in CSK to India Cements Shareholders Trust and fixed
October 9, 2015 as the record date for allotting shares
The nonpromoter shareholders of the company were allotted one equity share of CSK for each held in India Cements on the record date
“There is a good demand for CSK shares in off market as it’s currently trading at a discount to its brand value,” said Sambhav
Aggarwal, director, ARMS Securities, a Delhi-based firm dealing in unlisted shares
“On Thursday, shares were traded at around Rs 14 per share.”
CSK was suspended from the IPL along with Rajasthan Royals in 2015
following suspicious betting activity by respective team principals Gurunath Meiyappan and Raj Kundra.
Both teams served their bans, sitting
out the 2016 and 2017 seasons and returning to the tournament this year with CSK winning it.
“Nearly 4 lakh shares changed hands in the
last two days at a price between Rs 12 and 15,” said Anil Goel, a Delhi-based trader in unlisted shares
“Shares are trading at lower level because of CSK’s tainted history.”
For the year ended March 2016, CSK reported a turnover of Rs 171
crore and net profit of Rs 13 crore.
