In what would mark the first majority stake sale of an Indian Premier League (IPL) franchise since the league’s inception in 2008, Ahmedabad-based Torrent Group is in the final stages of acquiring a 66 per cent stake in Gujarat Titans, according to a report by The Economic Times. The transaction, valued at approximately Rs 7,500 crore ($856 million), is subject to approval from the Board of Control for Cricket in India (BCCI).
Gujarat Titans, currently owned by CVC Capital Partners, was acquired by the European private equity (PE) giant in 2021 for Rs 5,625 crore ($745 million). The proposed transaction includes a put option that allows CVC to sell its remaining one-third stake in the future. As per the original agreement, BCCI is expected to receive around 5 per cent of the deal value.
First major exit for CVC from Indian portfolio
The Gujarat Titans franchise is owned by Irelia Sports India, a CVC-promoted entity. CVC Capital Partners was also the first PE firm to own an IPL team. Since acquiring the team, CVC has reportedly invested around Rs 1,800 crore into the franchise. The firm had outbid competitors Adani Group and Torrent Group in 2021, with Torrent’s original bid at Rs 4,653 crore and Adani’s at Rs 5,100 crore.
CVC Capital Partners has been actively investing in global sports leagues, including LaLiga (Spain’s top football league), Premiership Rugby (England’s rugby competition), and Volleyball World. If the deal is finalised, it will mark one of CVC’s first major exits from its Indian investments.
Torrent’s sports ambitions
Meanwhile, Torrent Group, which operates in pharmaceuticals and power, has been expanding into new sectors like sports. The group’s investment will be routed through Torrent Investments Private Limited, its holding company. In 2021, Torrent established Torrent Sports Ventures to explore opportunities in the sports industry.
The Economic Times report indicates that the deal was led by Siddharth Patel and Amit Soni, with a formal agreement expected by the end of the week. The transaction is being fast-tracked to ensure its completion before the 2025 IPL season begins in March.
Gujarat Titans and IPL
Despite reporting a net loss of Rs 57 crore on revenues of Rs 776 crore in FY24, Gujarat Titans remain an attractive investment. The IPL’s franchise valuations continue to surge, driven by limited availability of teams and strong investor interest.
The IPL is projected to generate over Rs 50,000 crore from media rights and sponsorships between 2023 and 2027, with franchises receiving 50 per cent of this revenue. In FY24, IPL teams doubled their earnings, reinforcing the league’s position as one of the most lucrative sports properties worldwide.
