Chennai Super Kings (CSK) might become the first sports team from India to achieve a market valuation of one billion US Dollars and get the label of a “sports unicorn”, as per a report published in Business Standard.
The stocks of CSK rose quite a bit after the team’s 4th IPL title triumph last Friday. On the basis of the valuation of CSK’s shares in the market on Monday, the total market capitalisation of CSK at the moment is Rs. 4200 crore, which is significantly higher than what it was in April earlier this year.
Market capitalisation of CSK is not too far behind the market capitalisation of India Cements
CSK’s market capitalisation in April 2021 was Rs. 2465 crore, which means in the last 6 months, CSK has seen a 68% rise in its valuation in the market. CSK cricket limited has now got to the point where the company is not too far away from surpassing its parent company India cements limited, as far as market capitalisation is concerned.
Right now, the market capitalisation of India Cements is Rs. 6644.20 crore which is higher than that of CSK’s market capitalisation, but it can be surpassed in near future.
Experts reckon if the two new IPL franchises that will come into shape towards the end of this year are valued somewhere between 4000 and 5000 crore INR, then CSK’s stocks will rise even further which will subsequently increase its market capitalisation.
N Srinivasan, who is the owner of CSK and managing director of India Cements, himself thinks that brand CSK will go past brand India Cements in terms of market valuation because of the passion among the people for the game of cricket in India.
“Brand CSK will outgrow Brand India Cements. If you look at the history of franchise-based leagues in the US, it will outgrow everything. Passion for cricket is so much in India. The road between countries will see franchise-based leagues getting the precedence as we go along,” Srinivasan was quoted as saying by Business Standard.