Gujarat Titans' up for sale: Adani, Torrent in race
As per reports, CVC Capital Partners is negotiating with the Adani Group and the Torrent Group to sell its controlling stake in the IPL franchise Gujarat Titans. CVC Capital wants to sell the majority of its stake in the franchise but is willing to retain a small portion.
Adani Group Chairman and industrialist Gautam Adani is now preparing to step onto the IPL pitch. In fact, the private equity firm CVC Capital Partners is preparing to sell its stake in the IPL franchise Gujarat Titans. Infact, they are in talks with the Adani Group for this deal. If the Adani Group succeeds in acquiring the stake, they will face Mukesh Ambani, the head of Reliance Industries, on the cricket pitch.
A report in the Economic Times, citing sources close to the matter, states that CVC Capital Partners is negotiating with the Adani Group and the Torrent Group to sell its controlling stake in the IPL franchise Gujarat Titans. CVC Capital wants to sell the majority of its stake in the franchise. But it is willing to retain a small portion.
The report further mentions that the BCCI’s lock-in period, which prevents new teams from selling their stakes, will end in February 2025. The value of the three-year-old franchise could be between $1 billion and $1.5 billion, or ₹8,300 crore to ₹12,000 crore. CVC Capital had bought the IPL franchise in 2021 for ₹5,625 crore.
Adani vs. Torrent: Fight to buy stakes in Gujarat Titans
It is worth noting that the Adani Group had missed the opportunity to acquire the Ahmedabad IPL franchise in 2021. There was intense competition for the Ahmedabad franchise at that time. Adani Group had bid ₹5,100 crore and the Torrent Group bid ₹4,653 crore.
According to the report, an official stated that both the Adani Group and Torrent are making strong efforts to buy the majority stake in Gujarat Titans. For CVC Capital, this could be a great opportunity to sell their stake in the franchise.
Adani, Torrent, and CVC have declined to comment on the matter. The headquarters of Adani and Torrent Group are in Ahmedabad, while CVC Capital’s headquarters is in Luxembourg.
Cricket debut not a first for Adani Group
Currently, the Torrent Group has no investments in cricket. In contrast, the Adani Group has made its debut in cricket by acquiring teams in the Women’s Premier League and the UAE-based International League T20. The Adani Group bought the Ahmedabad franchise in the Women’s Premier League with the highest bid of ₹1,289 crore.
The US investment bank Houlihan Lokey has estimated the valuation of the IPL at $16.4 billion, thanks to media rights worth $6 billion. In terms of brand value, Chennai Super Kings (CSK) is at the top with a brand value of $231 million. While Gujarat Titans is ranked 8th with a brand value of $124 million.
If the Adani Group finalizes the deal with CVC Capital, they might face Mukesh Ambani on the cricket pitch. Reliance Industries owns the Mumbai Indians franchise.