India Premier League franchisee Chennai Super Kings stocks trading in off-market between ₹13 and ₹15 per share have put the company evaluation at around Rs 450 crores as against the brand value fo $98 million (Rs 700 crore).
CSK equity, which was transferred to the 94,000 retail shareholders of parent India Cements earlier this week, has been changing hands at Rs 13-15 apiece, according to four people who deal in unlisted stocks.
Brand CSK was valued at $98 million (₹98 crore approx) by American Appraisal India and Dufff and Phelps. According to a report in Economic Times, investors are lapping up shares the CSK-ownership entity Chennai Super Kings Cricket in off-market transactions.
“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 has told ET. “Savvy investors are interested in buying CSK shares.”
“Nearly 4 lakh shares changed hands in the last two days at a price between Rs12 and Rs 15,” Economic Times has quoted Delhi-based unlisted shares trader Anil Goel as saying. “Shares are trading at lower level because of CSK’s tainted history.”
“There is a good demand for CSK shares in off market as it’s currently trading at a discount to its brand value,” said Sambhav Aggarwal, director, ARMS Securities, a Delhi-based firm dealing in unlisted shares. “On Thursday, shares were traded at around Rs14 per share.”