- by Stocktry Expert
- 05th May 2021
Unlisted Shares of CSK have Plunged 30% After Suspension of IPL
The breach of Covid-19 in bio-bubble has led to suspension of the ongoing edition of Indian Premier League (IPL). Nearly half a dozen players and support staff from different staff are tested positive. The cricket tournament has been postponed indefinitely, mid-tournament.
After the developments in the last few hours, unlisted shares of IPL franchise Chennai Super Kings (CSK) have descended some 30-odd percent. The unlisted scrip began with Rs. 82-85 mid-April while on Tuesday, after suspension was announced, it came down to Rs. 60-62 in off-market trade.
Dealers of the pre-IPO market said the immediate decision of tournament put to an halt was unexpected.
Sandip Ginodia, CEO of Altius Investech, a Kolkata-based firm that deals in unlisted shares, said the decision (to suspend IPL) was not surprising. “When the nation is facing the wrath of a lethal pandemic, sports and entertainment take a back seat,” he said.
"However, it is a short-term impact, as the tournament was halted only for some time,” he said. “It is likely to resume in the near future once things come under control. The fundamentals are still sound and intact,” Ginodia said, adding that he has a bullish view on CSK.
The stock MS Dhoni-led IPL, has been a proven multibagger in the unlisted market. The stock has rallied some 400 per cent in less than two years between 2018 and 2020 to trade at Rs 48-50 from Rs 12-15.
Ace investor and Dalal Street veteran Radhakishan Damani held 2.39 per cent (73,69,263 shares) in the company as of March 31, 2019. Life Insurance Corporation of India (LIC) holds 6.04 per cent.
Rajesh Singla, Founder of pre-IPO consultancy firm Planify, said, “A pause or suspension of IPL will impact their revenues further from advertisers and associated brands,” he said.
“The good part is that such tournaments are usually insured. Last year they had insurance coverage for disruption, but we are not sure if the current situation or voluntary suspension is covered under the claims,” he said.