Chennai Super Kings Cricket Ltd (CSKCL), the franchise owner of the Chennai’s IPL team Chennai Super Kings, (CSK) is mulling over borrowing up to Rs 350 crore for expansion of business and working capital requirement. The company proposes to avail financial assistance in the form of term loans, debentures, bonds, other instruments, working capital facilities and other financial assistance in Indian or foreign currencies both in short-term and long-term duration.
The company, besides owning CSK, has recently ventured into various cricketing activities including development of high performance centres and setting up of cricket and other sports academies pan India.
CSKCL has also entered global cricketing arena by obtaining the ownership of franchises Joburg Super Kings in Cricket South Africa (CSA) T20 League and Texas Super Kings in Major League Cricket in The United States of America.
All these initiatives initially require sufficient quantum of finance, which will be met by availing borrowings both in short-term and long-term duration. Keeping in view the future plans of the company and fulfil the long-term strategic and business objectives CSKCL is seeking the approval of the shareholders to increase its borrowing limits from Rs 250 crore to Rs 350 crore, CSKCL said in its Annual Report 2023.
The company has reported a 16.2% decline in its total revenue at Rs 292.34 crore for FY23 as against Rs 349.14 crore in the previous fiscal. The net profit for FY23 stood at Rs 52.17 crore up from Rs 31.54 crore in the last fiscal, marking an increase of 65.4%. The company’s cost of operations stood at Rs 201. 61 crore as compared to Rs 281.49 crore. The annual general body meeting of the company will be held virtually, on September 27.
According to the annual report, Super King Ventures Private Ltd, a subsidiary of the company, commenced its operations and started two academies, one based in Salem and another based in Chennai. The company had more than 400 students enrolled in the academies with the numbers constantly going up. It has also plans to start academies in other places and is in the process of acquiring suitable land at various places across India for developing infrastructure.
During FY23, the company has started ‘Talent Management’ as a new line of business, under which it will manage the commercial interest of some of the talented professionals in various sports activities primarily in cricket. CSK lifted its fifth IPL title with a five-wicket win over Gujarat Titans (GT) on May 29.