As the ownership lock-in period ends in February 2025, Ahmedabad-based Torrent Group is set to acquire a major stake in the Indian Premier League (IPL) franchise Gujarat Titans after striking an understanding with CVC Capital Partners, a European Private equity major, as per media reports.
The media reports state that Gautam Adani-promoted Adani Group has backed off from the race to acquire stakes in the IPL franchise and now the Torrent Group has reached an understanding for the same. As per the reports, the Adani Group has stepped back due to the high price-tag of the franchise.
The formal notification regarding the signing of the deal is only expected after the end of the lock-in period, the media reports have cited that Torrent and CVC have entered into a gentleman’s agreement regarding the deal. While the Torrent Group is set to have the ownership of a majority stake in the franchise, CVC is likely to retain a significant minority stake in Gujarat Titans.
The reports state that Gujarat Titans has been valued at USD one billion as the sponsorship income and media rights of the league have reported growth.
In 2021, Adani Group and Torrent were unsuccessful in acquiring the franchise as Adani Group placed its bid of Rs 5,100 crore, while Torrent placed a bid of Rs 4,653 crore. The ownership went to CVC Capital Partners which placed the bid of Rs 5,625 crore. CVC already has investments in Volleyball World, Premiership Rugby and LaLiga.
In IPL, the franchises boost their revenue through the Board of Control for Cricket in India’s (BCCI) central revenue pool, which is equally split between the franchises and the board. In the financial year 2024, IPL franchises’ revenue doubled to around Rs 600 to Rs 700 crore.
