CSK Unlisted Shares: A Pre-IPO Gem in India’s Sports Economy

Summary

From cricket dominance to boardroom brilliance, Chennai Super Kings (CSK) has transformed into a billion-dollar sports franchise. This article explores CSK’s journey, its financial strength, and why it’s becoming a hot favorite among long-term investors in the unlisted share and pre-IPO market.

Ask any cricket fan in India to name an IPL team, and chances are the first name you’ll hear is Chennai Super Kings (CSK). Synonymous with consistent performance, the iconic yellow jersey, and of course, 'Thala' MS Dhoni, CSK is not just a team—it’s a brand with immense financial value.

But beyond the cricket field lies the story of a unicorn—a company valued at over $1 billion. In this article, we’ll explore how CSK evolved from a cricket franchise to a business powerhouse and why it could be a compelling investment for long-term investors in the unlisted share and pre-IPO market.

Origins: A Strategic Beginning

CSK began its journey in 2008 when India Cements acquired the franchise for $91 million. Initially a division of India Cements, CSK was spun off in 2015 into a separate entity—Chennai Super Kings Cricket Limited. Shareholders of India Cements were allotted CSK shares on a 1:1 basis, making them early investors in what is now a sports unicorn.

Performance That Powers Business

CSK’s on-field success is a major driver of its off-field financial performance:

• 12 Playoff Appearances in 17 seasons

• 10 Finals, winning 5 IPL titles

• 58% Win Rate, the highest in IPL history

• 17.7 million followers on social media, making it the most followed IPL team

Winning isn’t just about trophies—it boosts revenue across sponsorships, media rights, merchandise, and brand collaborations.

Multiple Revenue Engines

CSK has diversified its income streams, which positions it as a stable investment:

1. Media Rights Grant

In 2022, BCCI sold IPL media rights for INR 48,000 crore (2023–2027). Of this, 45% is shared equally among the franchises. Each team receives approximately INR 432 crore annually, forming nearly 70–80% of CSK’s total revenue.

2. Brand Sponsorships

Top brands like Etihad Airways, Gulf Oil, Coca-Cola, and FedEx partner with CSK for jersey and kit branding, creating a strong sponsorship portfolio.

3. Match Day Revenue and Merchandise

Ticket sales (80% of home game revenues go to the franchise) and merchandise (caps, jerseys, accessories) form a vital part of CSK’s income.

4. Prize Money

Consistent playoff appearances ensure CSK earns additional prize money annually.

Financials: A Turnaround in FY24

CSK’s FY24 results marked a remarkable turnaround:

The spike in revenue came after CSK won its 5th IPL title, with income from central media rights up 142% YoY. Operating costs rose too—especially on account of player and staff salaries—but profitability was maintained.

Key Financial Ratios:

• Strong ROE - 51% & ROCE - 54%

• Low Debt-to-Equity Ratio - NIL

• Healthy Current Ratio - 1.86 times

Expanding Globally: CSK’s Subsidiaries

CSK’s ambition extends beyond the IPL, with international franchises and ventures:

1. Super Kings Ventures Pvt Ltd (SVPL)

• Runs cricket academies in Tamil Nadu

• 1,100+ students, INR 5 crore turnover

2. Joburg Super Kings (JSK)

• Competes in South Africa’s SA20 league

• INR 40 crore turnover, semi-finalist finish

3. Texas Super Kings (TSK)

• Competes in the USA’s Major League Cricket

• INR 1 crore turnover with INR 22 lakh profit

These ventures reflect CSK’s global strategy to become a leading name in cricket worldwide.

Valuation Insights: A Hidden Gem?

Currently, CSK’s unlisted shares trade at INR 194/share, with a market cap of INR 7,300 crore and a P/E ratio of 36x.

Compare this to Torrent Pharma’s acquisition of 67% of Gujarat Titans for INR 7,500 crore, valuing that franchise at INR 11,363 crore. Despite CSK’s superior track record, it’s valued much lower.

Estimated Intrinsic Value: Based on comparative valuation, CSK’s shares could be worth around INR 273/share—30% upside potential.

If you're considering buying CSK shares in the unlisted share space, platforms like Sharescart.com make it easy to access such pre-IPO investment opportunities. Sharescart enables buying and selling of top-performing companies before they hit the public market.

Shareholding Snapshot

• EWS Finance & Investment Pvt Ltd: 36%

• Rupa Gurunath: 5% (daughter of owner N. Srinivasan)

• Other holders: India Cements shareholders, unlisted market investors

Risk Factors Investors Should Consider

No investment is without risks. CSK investors should consider:

1. Rising Receivables: Increased from INR 6.5 crore (FY23) to INR 51.5 crore (FY24)

2. Loans to Related Parties: Jumped from INR 180 crore to INR 249 crore

3. Reputation Overhang: Past controversies like the 2013 spot-fixing ban

4. Market Competition: Growing sports leagues (ISL, PKL, etc.) could dilute viewership

5. Post-Dhoni Era: MS Dhoni’s retirement may impact fan engagement and brand value

Final Verdict: Should You Invest in CSK?

If you’re a short-term trader, CSK’s sideways movement (INR 170–210 in the last year) may not excite you.

But for long-term investors who understand brand equity, global scalability, and the economics of sports media, CSK offers rare exposure to India’s booming sports economy.

It’s a one-of-a-kind asset—no direct peer in the unlisted market, a loyal fanbase, diversified income, and global ambitions.

For investors who missed owning global sports assets like Manchester United or the NY Yankees, CSK offers a unique chance to tap into India’s sports economy from the ground up.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please do your own due diligence before investing in unlisted shares.