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CSK’s unlisted shares were valued at Rs 31 apiece. By 2024, those shares skyrocketed to Rs 190-195, providing a 529% profit for stakeholder LIC.
LIC’s 6.04% stake in CSK has delivered a jaw-dropping 529% return since 2019. (AP)
When you think of the Chennai Super Kings (CSK), dominance on the cricket field comes to mind — 12 playoff appearances in 14 seasons, 10 finals, and 5 IPL titles. But, off the field, CSK is scripting an equally impressive financial success story, one that has turned the Life Insurance Corporation of India (LIC) into an unlikely beneficiary.
When Life Insurance Corporation of India (LIC) inherited a stake in the Chennai Super Kings (CSK) cricket franchise, few could have predicted it would become one of its most lucrative investments. Today, LIC’s 6.04% stake in CSK has delivered a jaw-dropping 529% return since 2019, turning heads in both the financial and sporting worlds. Here’s how it happened and what’s next.
From Cement to Cricket: How LIC Backed a Winning Horse
In 2008, CSK was owned by India Cements, a company in which LIC held 1.8 crore shares. When IPL rules forced franchises to operate independently in 2014, CSK spun off into a new entity. LIC’s shares in India Cements translated to a 6.04% stake in the newly formed CSK company.
At the time, CSK’s unlisted shares were valued at Rs 31 apiece. By 2024, those shares skyrocketed to Rs 190-195, peaking at Rs 223 in 2022. This 529% surge (from Rs 31 to Rs 195) turned LIC’s initial investment into a 6x windfall, with profits nearing Rs 1,000 crore (based on stake size and price appreciation), according to finshots.in.
The Drivers Behind LIC’s 529% Profit
CSK’s financial performance has mirrored its on-field dominance. Key factors behind LIC’s gains include:
Explosive Revenue Growth
Central Pool Income (from broadcasting and sponsorships) jumped 150% YoY to Rs 479 crore in FY24.
Profit After Tax (PAT) soared by 1,365% to Rs 201 crore in FY24, up from Rs 14 crore in FY23.
Blockbuster Broadcasting Deals
The latest IPL media rights were sold for 3x the previous cycle, injecting massive cash flow into CSK’s coffers.
Brand Equity & Fan Loyalty
Dubbed the ‘Dhoni Factor’ after iconic captain MS Dhoni (Thala), CSK boasts one of IPL’s most loyal fanbases. Partnerships with giants like Muthoot Group further bolstered sponsorship revenue.
