Financial Express reports that India Cements Limited(ICL) is planning to list Chennai Super Kings in the next two years. ICL's Plan is based on the belief and the expectation that the franchise will grow substantially in the years to come and would become a major league on the lines of European and US leagues.
N. Srinivasan, Vice Chairman and Managing Director of India Cements Limited said in the interview,
“Our aim is to make the league as one of the leading league in India on the lines of Europe and the US such as United Manchester over a period of time. We are excited over the response from the public for our franchisee and the company received over 26,000 suggestions to name the franchisee,”
“Ultimately our franchisee will be made to grow substantially in terms of volume and value and it will bring a strong brand equity to the parent company” [and blah! blah! blah!... :)]
He also added the investment in Chennai Super Kings is a revenue-positive proposal.
Though some people would look at an IPO as an ideal opportunity for India Cements Limited to milk the cow, I personally would like to have an IPO as soon as possible. My reasons for that:
- Fans, in addition to being supporters of the franchise, would get the opportunity to own the club.
- If the Chennai Super Kings lists itself in the next 3 or 4 years, most probably it would be the first one to do so. As an result, the stock markets would undervalue the firm because of the risk and the untested business model. There lies my chance to make a few bucks.
- The franchises would start making profits only in the years to come. So India Cements Limited will be facing capital crunch for investment(working capital) sooner or later.
- At some point in the future, the franchises would like to have their own cricket ground, training facilities, etc. All of these are capital-intensive investments. What better place than Stock markets to raise this money?
Hope Chennai Super Kings comes out with an IPO sooner than latter.