Chennai Super Kings(CSK), which is one of the successful IPL franchises, is all set to borrow the new funds of Rs 350 crore for its business expansion. After showing stellar performance on the ground and winning the IPL tournament for the 5th time, CSKCL decided to venture into developing cricket stadiums, performance centres, and sports academies across PAN India. You might be curious about the possible plans CSK might have to borrow Rs 350 crore. In this post, we will discuss it in detail.
Why Is CSK Borrowing New Funds Of Rs 350 Crore?
According to the report published by The Hindu, CSK is borrowing the new capital of Rs 350 crore to meet its business expansion plan and fulfil long-term strategic objectives. In the Annual meeting, which was held on September 27, a resolution of increasing the borrowing limit from Rs 250 to 350 crore was presented in front of CSK stakeholders. The good news is that the Chennai Super Kings Cricket Limited(CSKCL) board gets approval from the stakeholders and board members.
As per the information shared by the CSK officials, the borrowing capital of Rs 350 crore will be used for various cricketing activities, which include building state-of-the-art stadiums, developing high-performance centres, and constructing the new cricket stadium and sports academies across PAN India.
What Are The Plans Of CSK To Borrow Capital?
There is no doubt that the borrowing capital of Rs 350 crore will aid CSK in meeting its business expansion objectives. The company is known for its diversified business model, which allows it to earn revenue even during off-IPL season. As a result, CSK’s share price didn’t fluctuate much, allowing retail investors to make a good return on investment.
When it comes to meeting the borrowing capital needs, CSK has various options. According to the Financial Express, CSK proposes to avail financial assistance in various forms, which might be of long and short-term duration.
One of the preferable ways for CSK to borrow Rs 350 crore is via term loans. During this, CSK can borrow the required sum on the specific borrowing terms. However, CSK will be required to repay the fixed amount in the specific period.
Debentures & Bonds
CSK is also looking to get the required capital for the business expansion via debentures and bonds. As a debt financial instrument, companies can use these financial debt instruments to get borrowing capital from reputed financial institutions.
Working Capital Loan
Another plan that CSK might have is a working capital loan to meet its business operational needs. The company can request a long-term or short-term loan that meets its business expansion and long-term strategic objectives.
Apart from these, CSK might also look for other options, which include financial assistance in Indian and foreign currency to borrow the amount of Rs 350 crore.
Will Borrowing Capital Impact CSK Share Price?
Chennai Super Kings(CSK) share price in the unlisted share market depends on various factors, which include the company’s financial performance, market conditions, etc. The debt on the company impacts the market valuation, which in turn affects the CSK share price.
However, it is difficult to say how much the share price of Chennai Super Kings gets impacted by the borrowing capital if the company gets it in exchange for the equities.
If we see the CSK unlisted share price trend, it increased steadily in the last four months. According to the fresh market data, Chennai Super Kings Share price today is Rs 161.0 per equity share. However, you must know the predicted value of CSK share price at the end of 2023 to plan your investment accordingly.
Invest In CSK Unlisted Shares With Stockify
The news of CSK borrowing Rs 350 crore for business expansion signifies the future growth scope of the company. Being the best-performing IPL franchise, CSK received huge support across India, which also benefits it in the unlisted share market. There are chances that CSK share price will increase when the company expands its operations. We suggest you buy CSK pre-IPO shares, which involve low risk and offer high returns in the long term.
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1- How much is the revenue of Chennai Super Kings in the financial year 2023?
In the financial year 2023, Chennai Super Kings recorded a revenue of Rs 2.9 billion, which is less compared to its revenue of Rs 3.4 billion in the previous year.
2- What was the Profit After Tax(PAT) of CSK in the last year?
As per the data shared by the company, CSK’s PAT in the last financial year was Rs 52.17 crore. For getting more information about the company, subscribe to Stockify.
3- How does CSK earn money?
Chennai Super Kings earn revenue via different sources, which include the sale of match tickets, merchandise, sponsorships, match fees, etc. To know more information about CSK, connect with our experts today!
4- How can I check the CSK share price online?
Stockify is the best online platform to check the updated CSK share price in India. We regularly update the share price based on fresh market data.
5- When will CSK’s IPO launch in the market?
There is no exact date released from the company regarding its IPO yet. As per rumours, the company might launch its IPO next year. To stay updated with the latest CSK news, subscribe to Stockify.