Chennai Super Kings

Chennai Super Kings IPO Review, Allotment Status, Subscription, Price, Date & More.

Let’s have a detailed review of the company and analytics of the Chennai Super Kings IPO release date, IPO offer price, subscription, Chennai Super Kings IPO allotment, grey market price and other details like the company’s background, its financial positions, and its other related things

 

Summary of Chennai Super Kings

The Chennai Super Kings (CSK) is a franchise cricket team based in Chennai, Tamil Nadu, which plays in the Indian Premier League (IPL). Founded in 2008, the team plays its home matches at the M. A. Chidambaram Stadium in Chennai. The team served a two-year suspension from the IPL starting July 2015 for the alleged involvement of their owners in the 2013 IPL betting case, and won the title in its comeback season. The team is captained by Mahendra Singh Dhoni and coached by Stephen Fleming.

The Super Kings have lifted the IPL title thrice (in 2010, 2011 and 2018), and have the best win percentage among all teams in the IPL (61.28). They hold the records of most appearances in the playoffs (ten) and the Final (eight) of the IPL. They are the only IPL team to qualify for the playoff stage in each edition of their appearance in the league. In addition, they have also won the Champions League Twenty20 in 2010 and 2014. The brand value of the Super Kings in 2019 is estimated to be around ₹732 crore (roughly $104 million), making them the second-most valuable IPL franchise, after Mumbai Indians.

Franchise history of Chennai Super Kings

In September 2007, the Board of Control for Cricket in India (BCCI) announced the establishment of the Indian Premier League, a Twenty20 competition to be started in 2008. In January 2008, the BCCI unveiled the owners of eight city-based franchises. The Chennai franchise was sold to the India Cements for $91 million, making it the fourth most expensive team in the league behind Mumbai, Bangalore and Hyderabad. India Cements acquired the rights to the franchise for 10 years. Former ICC Chairman N. Srinivasan was the de facto owner of the Chennai Super Kings, by means of his position as the vice-chairman and managing director of India Cements Ltd. The franchisee was transferred to a separate entity named Chennai Super Kings Cricket Ltd., after the Supreme Court of India struck down the controversial amendment to the BCCI constitution's clause 6.2.4 that allowed board officials to have a commercial interest in the IPL and the Champions League T20 on 22 January 2015.

Chennai Super Kings Overview:

-        CIN: U74900TN2014PLC098517

-        Reg. Date: 19.12.2014

-        SECTOR: Consumer Discretionary

-        Sub-Industry: Entertainment Facilities

-        Website: www.chennaisuperking.com

-        Reg. Office: dhun building, no: 827, anna salai, Chennai- 600002, Tamilnadu, India.

-        ISIN: INE852S01026

-        Face Value: Rs. 0.1

-        PAT: 111.2 cr.

-        EPS: Rs. 3.61

-        Net Worth: 125.51 cr.

-        Debt/EQUITY: 0.52

Strength of the Chennai Super Kings:

-        Chennai Super Kings Has been the most successful IPL team since its inception with a strong global brand named in IPL India.

-        The company has an excellent marketing and high-quality merchandising strategy with strong sponsors like Muthoot, Reebok, gulf, etc.

-        Captain MS. Dhoni is the only Indian captain who has led India to all three major ICC events from winning the maiden T20 World Cup in 2007 to World Cup victory in 2011 and also Champions Trophy in 2013.

-        Company is owned by Mr. N. Srinivasan who is vice-chairman and managing director of India Cements and also was the former Chairman of the International Cricket Council (ICC) and former President of the BCCI.

-        Chennai super kings is the recipient of six fair play awards in total eight matches and they have won it in the years 2008, 2010, 2011, 2013, 2014 and 2015. No other team has won this award more than once.

Industry overview:

-        The popularity of sports in India is driven by cricket, which made for content viewed by 93% of all sports viewers in the country in 2018.

-        Cricket in India is a billion-dollar industry and Board of Control for Cricket in India (BCCI) is the richest cricket association in the world with a net worth of more than Rs. 106,500 Cr. as in 2006 Of all the 10 full members of ICC (International Cricket Committee), BCCI contributes almost 70% of ICC’s expenses on cricket.

-        There was a 14% growth in ads across all cricket content from 2016 to 2018. E-Commerce has emerged as the dominant sector with the share of ads going up from 14% in 2016 to 42% in 2018.

-        The IPL continues to score year-over-year, growing both in terms of viewers and 50% of IPL viewers are less than 30 years of age.

-        The total base price for the eight franchisees Chennai Super Kings, Delhi Daredevils, Hyderabad Deccan Chargers, Kings XI Punjab, Kolkata Knight Riders, Mumbai Indians, Rajasthan Royals, and Royal Challengers Bangalore was Rs 2840 Cr and the auction of these eight franchisees fetched approximately Rs. 5140 Cr. for IPL.

Financial review of Chennai Super Kings:

-        This year the company has recorded a total revenue of Rs. 417.83 which was only Rs. 4.07 Cr. In FY 2018, Total growth of more than 10000% in one year.

-        EBITDA has grown from Rs. 0.23 Cr. in FY 2018 to Rs. 163 Cr. in 2019 and EBITDA Margin has Grown from 6% to 39% in the same year.

-        The company has recorded Net profit Rs.111.2 Cr. in FY 2019 as against Rs. -51.49 Cr in FY 2018, shows tremendous growth of more than 310% in their profit.

-        The debt of the company is Rs. 56 Cr. in FY 2019 while its Debt to equity ratio has reduced this year and reached 0.56 as against 5.56 in FY 2018.

-        The company is continuously improving its profit margin and reached 26% in FY 2019 against -12.5% in FY 2018.

-        The net worth of the company breached the level of Rs. 125.51 Cr and shows growth of 777% as against Rs 14.31 Cr. in FY 2018.

Chennai Super Kings IPO Allotment Status, Subscription, Price, Date & More.

Chennai Super Kings IPO date has not been released yet. Once the IPO date has been issued, the subscription details will be updated regularly. The Allotment status will be announced about 3-4 weeks of the IPO issue date. The price band of the IPO will be known only after the offer price of the IPO issues is known. One can know about the price band of the IPO in about a week.

Planify view over Chennai Super Kings:

-        One of the major strengths of this company is the fan army backing them, and the emotional support that the Chennai super kings team has been receiving, for them cricket is religion.

-        Strong marketing Strategy with great range of products like card games, board games, body spray, mobile cases, caps, bags, notebooks, laptop sleeves, printed cushions, etc. which is available and delivered to fans through E-Commerce section of their website.

-        Strong management and Strong team lead by Mr. Srinivasan and team captain MS Dhoni having tremendous knowledge and experience in their respective fields.

-        The financial condition of Chennai super kings Cricket Ltd is super strong and the company has multiple sources of revenue which is clearly improving in their profit and profit margin.

-        Chennai super kings team is sponsored by Giant Brand like Reebok, British Empire, Frooti, Peter England, etc. which also increases brand value and reach of team globally and we rate this company 3 out of 5.

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