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Chennai Super Kings shares selling like hot cakes off-market, gets Rs 450 crore evaluation
Chennai Super Kings shares are reportedly being traded off-market at a cost of Rs 13-15 per share. The current off-market evaluation of the company is evaluated at Rs 450 crore as against the CSK brand value of USD 98 million according to an evaluation by American American Appraisal India and Duff & Phelps. CSK shares carry a face value of 10 paise for its Rs 3.1 crore paid-up capital. However, the listing of the franchise is not expected to happen any time soon.
“Many investors who got CSK shares early this week were seen selling them off-market between Rs 13-15 per share,” Narottam Dharawat, a Mumbai based broker who deals in unlisted shares is quoted as saying by Economic Times. “Savvy investors are interested in buying CSK shares.”
Another Delhi-based trader is quoted as saying that the shares are going at “Rs 12 and Rs 15.” However, compared to a recent deal between JSW Sports, a unit of Sajjan Jindal-owned JSW Group, and GMR Group-owned IPL franchise Delhi Daredevils, CSK shares seem to be trading at lower levels, which is speculated as being due to the chequered past of CSK. The Rs 450 cr evaluation, apart from being lower than the franchise’s brand value is also lower than other teams from the Indian Premier League.
India Cements had transferred its holding of CSK to India Cements Shareholders Trust with October 9, 2015 as the date fixed for allotment of the shares. The shareholders of the company were allotted a share each for every India Cements share they owned. However, since that time period, CSK, alongwith Rajasthan Royals had to serve a two-year suspension due resepective team principals Gurunath Meiyappan and Raj Kundra found to being involved in suspicious betting activity.