CSK shares tumble 10-15%; Chennai Super Kings’ pick of players in the IPL Auction gets a “thumbs down”
The Chennai Super Kings (CSK) pick of players in the IPL Auction has not gone down well with the unlisted share market. The shares of MS Dhoni’s CSK have dropped 10-15% in the previous two days, and shareholders have voted against the reigning champions.
Chennai Super Kings stock price were trading in the Rs. 215-225 price range on the GREY MARKET towards the end of last month. CSK’s market capitalization also surpassed 7,600 crores on February 1st, making them India’s first Sports Unicorn.
However, following the IPL Auction, the price of the shares has dropped to Rs. 180-190 range. According to sources, a mutual fund institution has also requested offers for the sale of their 100,000 shares in the entity.
Thumbs down to Chennai Super Kings stock price
According to a few market experts, CSK’s pick of players in the IPL Auction did not sit well with a few shareholders.
A well know player in the Unlisted Market, Kamaal Mujtaba said: “They have again invested in aging players. Some of the youngsters are completely unknown commodities. As the success of the team is directly proportionate to the commercial deals they weave, the market feels this team is not a winning unit. That’s why shares are falling.”
Despite dropping share prices, CSK’s market capitalization is significantly higher than that of its parent company, India Cements. According to the stock value at market close on Monday, the market capitalization of the leading cement business was considerably below 6,500 crores. CSK’s market capitalization is now about 7,000 crores.
Chennai Super Kings unlisted share price
CSK won the IPL title last season, which contributed to a surge in its share price on the grey market. The Chennai Super Kings unlisted share price skyrocketed after Sanjiv Goenka-owned RPSG Group bid 7,000 crores or more for the IPL’s Lucknow franchise and CVC Capital bid 5,625 crores for the Ahmedabad franchise.
The stock was trading at Rs 110-120 during the IPL Finals week, but it reached 210-225 in February. The stock was trading in the informal market for Rs 90-100 three months ago. CSK’s stock price has risen more than 2,000% in just three years, from Rs 12-15 in November 2018.
It is worth noting that CSK is the only sports team in the country whose shares are open to public ownership, and they are popular owing to their on-field performances.