CVC Capital Partners Plans to Sell Majority Stake in Gujarat Titans
Private equity firm CVC Capital Partners is reportedly looking to sell a majority stake in the Indian Premier League (IPL) franchise, Gujarat Titans. According to a report in The Economic Times, CVC is in discussions with Adani Group and Torrent Group to offload a controlling interest while retaining a minority holding.
End of Lock-in Period
This move comes as the Board of Control for Cricket in India’s (BCCI) lock-in period, which prevents new teams from selling stakes, is set to end in February 2025. The Gujarat Titans, a relatively new franchise at three years old, could see its valuation soar to between $1 billion and $1.5 billion, as suggested by the report. CVC originally purchased the franchise for $745 million in 2021, at the then-exchange rate.
Potential Buyers: Adani Group and Torrent Group
Both Adani Group and Torrent Group are based in Ahmedabad and are potential buyers eyeing the majority stake. Adani, with existing investments in the Women’s Premier League (WPL) and the UAE-based International League T20, had missed out on owning the Gujarat Titans in 2021, despite placing a bid of Rs 5,100 crore. Torrent, although not yet involved in cricket, had also placed a substantial bid of Rs 4,653 crore during the 2021 auction.
Adani’s Cricket Investments
Adani Group has been actively investing in cricket, having secured the Ahmedabad franchise in the WPL with a top bid of Rs 1,289 crore in 2023. The group’s continued interest in expanding its cricket portfolio underscores its commitment to the sport and strategic regional investments.
CVC’s Diverse Sports Portfolio
CVC Capital Partners, headquartered in Luxembourg, already has a significant presence in global sports. Their portfolio includes investments in LaLiga, Premiership Rugby, Volleyball World, and the Women’s Tennis Association. The firm’s investment in the Gujarat Titans has seen the franchise win its maiden IPL title, enhancing its popularity and market value.
Future of Gujarat Titans
The potential sale of a majority stake in Gujarat Titans marks a significant shift in the franchise’s ownership dynamics. As CVC looks to partially exit, the new majority stakeholders, whether Adani or Torrent, will play a crucial role in steering the team’s future. The end of the BCCI’s lock-in period opens new avenues for investment and growth in the IPL, making the Gujarat Titans a lucrative prospect in the cricketing world.
This strategic move by CVC and the interest from prominent business groups like Adani and Torrent signal a dynamic period ahead for the Gujarat Titans, potentially elevating their standing and performance in the IPL.(Dubai7-Realmoneygame)