It may be the IPL's second-most successful team, but the Chennai Super Kings is all set to become its first billion-dollar baby. The shares of Chennai Super Kings Cricket Limited (CSKCL), which runs the Chennai Super Kings, have hit an all-time high in the unlisted market.

On October 26, CSKCL’s share price crossed the Rs 220 mark in trade, from Rs 110 to 120 per share a week ago, which in turn brought its market cap to around Rs 7,000 crore — 500 crore rupees short of entering the unicorn club.

The rise was expected. A fourth IPL title this year, combined with sky-high bids by the RP Sanjiv Goenka Group and CV Capital Partners for teams Lucknow and Ahmedabad, have put the Chennai Super Kings in a whole new league.

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On Monday, the IPL and BCCI made a windfall as the RPSG Group and CVC Capital Partners placed winning bids of Rs 7,090 crore and Rs 5,600 crore respectively for two new IPL teams: Lucknow and Ahmedabad.

CSK’s valuation could exceed that of parent company

Once the IPL’s broadcasting rights for 2022 are sold for what is projected to be a record sum on the back of these valuations, CSKCL could see its valuation hit a billion dollars and its market cap exceed that of its parent company, India Cements (market cap: Rs 6,162 crore).

Experts say a stellar comeback after a two-year suspension, consistent on-field performances, and a unique fan following have contributed to Brand CSK’s growth.

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"The fan following, particularly after the two-year ban, was quite a revelation. The team has emerged even stronger ever since," said N Ram, former editor in chief of The Hindu. "The market valuation has kept up to this," he added, "N Srinivasan (India Cements chairman) has also joked — maybe half-seriously — that CSK's market cap will overtake market cap for India Cements itself."

Consistency, continuity propel investor confidence in CSK

Market valuation aside, investor confidence in the Super Kings has remained thanks to an off-field consistency that the team has made it's own. In the last ten years, the Chennai Super Kings have hardly changed their core group — a feature that has kept sponsors happy.

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"They (CSK) have the largest core group among other IPL franchises. A couple of others may come close, but CSK have done it well in a focused manner,” said Achint Setia, vice president & business head (social commerce) at Myntra, which recently inked a year-long sponsorship deal with the Super Kings.

"With MS Dhoni leading the way, he is being clearly seen the face of the team and has nurtured talent around him," Setia added.

However, despite key features like familiarity, continuity, success and consistency playing a key role in making Brand CSK what it is, it remains to be seen just how familiar the Chennai Super Kings will look next season. The reason: nobody knows what the IPL’s latest player-retention policy is just yet.

However, even if the Chennai Super Kings fails to retain a few key players, ensuring that their captain, Dhoni, stays at the helm of cricketing affairs could go a long way in strengthening this billion-dollar brand.

(Edited by : Aditi Gautam, Jomy Jos Pullokaran)

First Published:Oct 27, 2021 10:29 PM IST