Gujarat Titans up on Stake? Adani and Torrent lock-on in The Race- Report
The BCCI-set time period which prevents new team from selling stakes will end in February 2025.
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CVC Capital Partners is in discussion with Adani Group and Torrent Group regarding the scale of a controlling stake in the IPL franchise, Gujarat Titans.
A report stated that CVC is willing to sell a majority stake in the IPL franchise while holding a minor stake.
The lock-in period, where new teams cannot sell their stakes, set by BCCI, will end in February 2025.
Talking about being sold, the 3-year-old franchise can be value between USD 1 billion and USD 1.5 billion. CVC bought the franchise in 2021 for RS 5,625 crore (USD 745 million at that time).
Due to a record-breaking USD 6 billion media rights deal, US investment bank Houlihan Lokey has given the value of USD16.4 billion to the IPL.
“Having missed out on the opportunity to own IPL’s Ahmedabad franchise in 2021, both Adani and Torrent are now eager to buy a majority stake in Gujarat Titans. For CVC, it is a good opportunity to monetise its stake in the franchise,” said an official.
Both Adani and Torrent are based in Ahemdabad, while CVC Capital is in Luxembourg.
“IPL franchises have been attracting a lot of investor attention since the league has established itself as an attractive asset with solid cash flows,” a second official said.
Unlike Torrent, Adani has already invested in cricket in the Women’s Premier League (WPL), and the UAE-based International League T20.
CVC, having assets of RS 193 billion under management, is a big back of sports. CVC has a significant amount of places with investment such as LaLiga, Premiership Rugby, Volleyball World, and the Women’s Tennis Association.
In 2021, the BCCI sent out two more teams to be added into the IPL, which were city-based. Ahmedabad was one of the most contested cities, with Adani Group placing bid of %,100 crore and Torrent Group placing 4,653 crore.
Irelia Sports India, owned by CVC Capital, beat other bidders to secure the Ahmedabad franchise. Gujarat Titans then won the IPL tile, giving the brand a major boost.
Gujarat Titans had a brand value of USD 124 million, placing them in the 8th rank of IPL teams. CSK tops the list with a brand value ofUSD 231 million.
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