Chennai Super Kings Cricket Limited(CSKCL) is looking to borrow the new funds of Rs 350 crore for its business expansion purposes. The franchise owner of the IPL’s most successful team, Chennai Super Kings, has various plans before its Initial Public Offering(IPO). As per the report of the Financial Express, CSK is looking for this whopping amount of borrowing for its business expansion and capital requirements.
In the press release, CSKCL officials clarified that the company wants to avail the new funds via bonds, debentures, and long & short-term loans. Undoubtedly, CSK emerged as one of the profitable companies and continuously performed while providing high returns to its investors. In this blog, we will discuss the possible borrowing plans for CSK for its business expansion and working capital requirements and its effects on CSK share price and performance.
Possible Borrowing Plans Of Chennai Super Kings Cricket Limited
Chennai Super Kings shared limited information about the borrowing capital for its future business expansion and working capital requirements. Being a quite successful IPL team, CSKCL is currently working towards its business expansion plans. As we mentioned above, the company proposes to get the required financial assistance in various forms like bonds, debentures, and loans to meet its capital requirements.
Recently, the company disclosed its business plans, which include setting up cricket academies across PAN India, developing high-performance centres, etc. It is also in talks with various investors to get the required funds of Rs 350 crore. Let’s see the possible borrowing plans of CSK to meet its financial needs:
CSKCL’s primary way of getting the required capital is via business loans. For any company which has a well-maintained balance sheet, getting a business loan from the financial institute is an easy way to get the new funds. There are chances that the company is required to show updated financial records and market valuation. It may also affect the CSK share price in the future as lenders may evaluate the company’s financials based on various metrics.
Seeking From Investors
The other preferred way to get the borrowing capital for CSK is to raise funds via investors. Since company business performance remained positive in the last few years, it will be easier for CSK to raise new funds via its existing or new investors. The other advantage for the company here is that Chennai Super Kings share price hasn’t fluctuated high since the end of IPL 2023. Here, the prior goal of the company is to get the required borrowing capital from the existing investors.
Initial Public Offering(IPO)
Initial Public Offering(IPO) is how most startups raise funds by offering their shares to the public. As CSK is planning to launch its IPO, there are chances the company has plans to raise Rs 350 crore through it. However, it is the least possible way, as the major focus of the CSK right now is to use various financial assistance like bonds and debentures. If the company decides to go this way, it will likely affect CSK share price in the unlisted share market.
How CSK Borrowing Plans May Affect Its Unlisted Shares?
You might be wondering how the CSK borrowing plans affect its pre-IPO stocks. It is crucial for you to understand that CSKCL is currently in its business expansion phase, which is a positive sign for the company and its investors. Since CSK unlisted shares performance remains at its peak during IPL season, the financial boost will allow the company to work on business diversification.
In the future, there are chances that the performance of CSK shares might improve, which in turn benefits its investors. Here are the possible effects of CSK’s borrowing plans on its unlisted shares:
Increase In Share Price
One of the financial metrics that largely affects the borrowing plans is CSK share price. The company will enter into different ventures which boost its operating revenue, EBITDA, and net profit. You might expect an increase in Chennai Super Kings share price in the coming years.
High Market Demand
Since CSK is known for its profitable business model and the only IPL franchise which offers its unlisted shares for trading. When the company gets the required working capital, it will operate and work towards increasing its PAT. The positive financials will likely increase investors’ participation, which might increase the demand for CSK unlisted shares.
Invest In CSK Pre-IPO Shares For Long-Term Benefits
Over the years, CSK emerged as the top-performing company both on and off-field. In the unlisted share market, the positive financials and growth in CSK share price attracted investors in a large number. Since CSK is working towards its business expansion plans, it will bring great opportunities for investors.
You can invest in CSK unlisted shares and become a part of IPL’s popular franchise’s stellar growth. We advise you to rely on India’s trusted unlisted shares broking platforms like Stockify. Expert brokers here will guide you at each step and help you invest in pre-IPO stocks hassle-free.