Ahmedabad-based Torrent Group is close to acquiring a 66% stake in Gujarat Titans, marking the first majority stake sale of an Indian Premier League (IPL) franchise since the league's inception in 2008. The transaction, worth approximately Rs 7,500 crore ($856 million), is subject to approval by the Board of Control for Cricket in India (BCCI).
Gujarat Titans, which is currently owned by CVC Capital Partners, was acquired by the European private equity (PE) behemoth in 2021 for Rs 5,625 crore ($745 million). The proposed transaction includes a put option that will allow CVC to sell its remaining one-third stake in the future. According to the original agreement, BCCI is expected to receive approximately 5% of the deal value.
CVC's first major exit from its Indian portfolio
The Gujarat Titans franchise is owned by Irelia Sports India, a CVC-backed company. CVC Capital Partners was also the first private equity firm to own an IPL team. Since acquiring the team, CVC has reportedly invested approximately Rs 1,800 crore in the franchise. In 2021, the firm outbid competitors Adani Group and Torrent Group, with Torrent's original bid of Rs 4,653 crore and Adani's of Rs 5,100 crore.
CVC Capital Partners has been making significant investments in global sports leagues such as LaLiga (Spain's top football league), Premiership Rugby (England's rugby competition), and Volleyball World.
If the transaction is completed, it will be one of CVC's first significant exits from its Indian investments.
Torrent's sporting ambitions
Meanwhile, Torrent Group, which operates in pharmaceuticals and power, has expanded into new markets such as sports. The group's investment will go through Torrent Investments Private Limited, its holding company. In 2021, Torrent formed Torrent Sports Ventures to investigate opportunities in the sports industry.
Siddharth Patel and Amit Soni led the deal, and a formal agreement is expected by the end of the week. The transaction is being expedited to ensure completion before the 2025 IPL season starts in March.
Gujarat Titans and the IPL
Despite reporting a net loss of Rs 57 crore on revenues of Rs 776 crore in FY24, Gujarat Titans remains a compelling investment. Franchise valuations in the IPL continue to rise, driven by limited team availability and strong investor interest.
The IPL is expected to generate more than Rs 50,000 crore in media rights and sponsorships between 2023 and 2027, with franchises receiving 50% of this revenue. In FY24, IPL teams doubled their earnings, cementing the league's status as one of the most profitable sports properties in the world.
