The Indian Premier League (IPL) and the stock market have a lot in common. These two have millions of followers, all wanting to support one winner. It is the chance of success by investing in stocks and now in the fantasy sports that have become popular through IPL that keeps people’s interest.
Both the IPL and the stock market are run by a handful of people who control the ups and downs that decide the fate of those who follow them.
Like the IPL, the market also has its stalwarts and stars whose footsteps are followed with the utmost seriousness. They are the masters of their field. One follows their success.
IPL auction of players is similar to share prices in many ways. Evaluation is the name of the game. Young stars are like start-ups whose unusual valuations are sometimes quite suspicious, but guessing their potential is a numbers game.
During the launch of an IPO, similar to a players auction, a flood of interest is generated and one has to wonder if the price and demand are sustainable. However, it made some of them instantly famous and wealthy.
The initial placements of the IPO are like the performance of the players, which are analyzed at the end of the season. The market cap of some of them shrinks, while many unknown stocks shine.
Rules and regulations have been made for both IPL and stock market. Insider trading and match-fixing somehow come to the fore despite tight security arrangements. Greed, as they say, knows no bounds. Gambling is a scary word that plagues both the sports and business worlds.
The success of IPL is largely based on the uncertainty of the game of limited overs cricket, while insider trading is a buzz word as far as stock exchange is concerned.
It is interesting to note how the 10 IPL owners relate to India’s stock and trade market.
The most sought after and valued company in all respects is Reliance Group. In the IPL, Mumbai Indians (MI) has been the most successful team and is owned by them. Mi have consistently been at their best and when one sees that they may fail, they still rise to the top. In both business and cricket, Reliance has shown a successful bet.
Cement has always been a strong component in India’s growing construction market. Chennai Super Kings owner India Cements is no different. They have been the second most consistent team in the IPL. The company and the IPL side are full of old and loyal individuals who always seem to sweat their last ounce to keep them in their race to win the title.
Delhi’s Jindal, Hyderabad’s Maran, Punjab’s Dabur and Lucknow-based Sanjeev Goenka Group are other business conglomerates that have kept the market afloat but are yet to taste the final fruits of success.
Each of their companies is thriving in their respective segments. These family owned corporate houses are all top bidders in the auction and it is heartening to see that they have strong support from their next inline youth brigade.
To create a winning organization, these young descendants of the family, many of whom are educated abroad, bring a touch of innovation and progressive thinking to their approach.
The likes of Preity Zinta, as well as Kolkata Knight Riders owners Shah Rukh Khan and Juhi Chawla, bring the limelight to the world of tinsel. It is very similar to the stock market star Rakesh Jhunjhunwala, whose every move is followed blindly. Their success story brings millions of fan followings and investors to the table and this is what gives both the market and IPL a taste of glamor and hope. KKR have had the same success as their owners. After that, boasting about some super-hits and performing was of little importance.
The ‘badshah of good times’ Vijay Mallya brought a royal and rich image to the IPL. His presence was vast and, like his image, he controlled his franchise and everything around it as if it were his private domain.
Notorious stock broker Harshad Mehta also became the favorite of the stock broking world. However, both these super individuals fall prey to their respective greed and fame. Royal Challengers Bangalore has several successful brands in its distillery portfolio as well as its cricket stars. However, success seems to be eluding them as the burden of their top-notch performers falls on the rest of the team.
The IPL also has an exotic touch to it. The gold medal was won by Manoj Badale, a successful entrepreneur from the United Kingdom under the banner of Rajasthan Royals. Winning the maiden IPL, paying the least amount to make a place among the mighty Indian industry, was a surprise in itself.
He fielded Shane Warne and later Shilpa Shetty, to make his franchise exciting to follow. The Royals became a team encouraging young entrepreneurs. He helped them build assets as valuable as newly acquired shares that make fortunes for their supporters.
A foreign investor has entered the IPL this year in CVC Capital Partners, the owner of Gujarat Titans. He overtook Adani Group, India’s fastest growing company, to get a place in the Indian Premier League.
CVC is known to invest heavily in promoting Volleyball, Rugby, Motor Racing and their presence will bring an entirely new approach to IPL. They, like foreign investment companies that thrive by investing in the Indian stock market, will build wealth and valuations before exiting.
In 2008 Bombay Stock Market Index was hovering around 15,000 mark and currently it has become 60,000 like IPL. There is a similarity in the way these two institutions are climbing the unknown peak of success.