(Source X)
Adani Group and Torrent Group are reportedly exploring an expanded role in the Indian Premier League (IPL). According to The Economic Times, both conglomerates are in discussions with CVC Capital Partners to potentially acquire a controlling stake in the Gujarat Titans (GT).
CVC Capital Partners had acquired the Ahmedabad franchise for ₹5,625 crore (US$670 million) in October 2021. Under the leadership of Hardik Pandya, the GT had a successful debut season in 2022, reaching the IPL final but narrowly missing out on the title to the Chennai Super Kings (CSK).
Looking ahead to the IPL 2024 season, the Gujarat Titans have appointed Shubman Gill as their new captain, succeeding Hardik Pandya who was traded to the Mumbai Indians (MI) in the previous year’s mini-auction.
CVC Capital Partners is in discussions with Adani Group and Torrent Group.
CVC Capital Partners is reportedly seeking to sell a majority stake in their IPL franchise while retaining a minority share. The BCCI’s lock-in period, which restricts new teams from selling stakes, will end in February 2025. During this period, CVC has been engaged in talks with Gautam Adani’s group and Torrent Group.
As per a report from the Economic Times, the Gujarat Titans, an IPL team established three years ago, is valued between $1 billion and $1.5 billion. CVC Capital Partners originally acquired the franchise in 2021 for ₹5,625 crore. Adani’s group and Torrent Group have shown interest in acquiring a controlling interest in the team based in Ahmedabad.
“Having missed out on the opportunity to own IPL’s Ahmedabad franchise in 2021, Adani and Torrent are vying aggressively to buy a majority stake in Gujarat Titans. For CVC Capital Partners, it’s a great opportunity to monetize its stake in the franchise,” said an official aware of the discussions, quoted in the report.
“IPL franchises have been attracting a lot of investor attention since the league has established itself as an attractive asset with solid cash flows,” another official said as per the outlet.
While Torrent Group has not ventured deeply into cricket, the Adani Group has made substantial strides in the sport. In 2023, they secured the Ahmedabad franchise in the Women’s Premier League (WPL) with a winning bid of ₹1,289 crore. Beyond domestic leagues, Adani Sportsline has also committed investments in the UAE International T20 League and other international cricket initiatives.
Meanwhile, for the fiscal year ending March 2023, Irelia Sports, owned by CVC Capital, recorded a net loss of ₹429 crore against revenues of ₹359 crore. In terms of brand value within the IPL, the Gujarat Titans held a valuation of $124 million, ranking eighth overall. The Chennai Super Kings topped the list with a brand value of $231 million, according to Houlihan Lokey’s assessment.
Earlier, Gujarat Titans COO Arvinder Singh said the franchise will “attain profitability in the next media rights cycle. Even the original ten franchisees took four to five years before they turned profitable. We are confident that not only will we turn profitable, but our brand value will also increase exponentially.”
