Gujarat Titans' owners to change? Indian giant Gautam Adani looking forward to owning the majority share
Published - 19 Jul 2024, 02:17 PM | Updated - 23 Aug 2024, 01:15 AM
In a recent development, Adani Group and Torrent Group are considering expanding their presence in the Indian Premier League (IPL). Adani Group and Torrent Group are in negotiations with CVC Capital Partners to acquire a controlling stake in the Gujarat Titans (GT), according to a report by The Economic Times.
In October 2021, CVC Capital Partners secured the Ahmedabad franchise in the Indian Premier League with a bid of ₹5,625 crore (US$670 million). The GT franchise appointed Hardik Pandya as captain for the IPL 2022 season. The all-rounder led the Ahmedabad-based franchise to victory in their maiden season in 2022.
The Titans reached the IPL final last year but were defeated by the Chennai Super Kings (CSK) in a thrilling encounter. The team management appointed young opener Shubman Gill as the new captain ahead of the IPL 2024 season. Hardik Pandya was traded to the Mumbai Indians (MI) in last year's mini-auction.
CVC Capital Partners In Talks With Adani Group and Torrent Group
CVC Capital Partners is reportedly looking to sell a majority stake in their IPL team while retaining a minority share. The BCCI's lock-in period, which prevents new teams from selling stakes, will conclude in February 2025. CVC has been in discussions with Gautam Adani's group and Torrent Group during this time.
According to a report in the Economic Times, the Gujarat Titans, a three-year-old IPL team, is valued between $1 billion and $1.5 billion. CVC Capital Partners purchased the franchise in 2021 for ₹5,625 crore. Adani's group and Torrent Group are interested in acquiring a controlling stake in the Ahmedabad-based team.
"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.
Unlike Torrent, the Adani Group has made significant investments in cricket. They acquired the Ahmedabad franchise in the Women's Premier League (WPL) with a top bid of ₹1,289 crore in 2023. Additionally, Adani Sportsline has invested in the UAE International T20 League and other international cricket ventures.
For the fiscal year ending March 2023, CVC Capital-owned Irelia Sports reported a net loss of ₹429 crore on ₹359 crore revenue. The Gujarat Titans had a brand value of $124 million, ranking eighth in the IPL, with the Chennai Super Kings leading at $231 million, according to Houlihan Lokey.
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.”
