In what would be the first majority stake sale in an IPL franchise since the league’s inception, Ahmedabad-based Torrent Group is reportedly in the final stages of acquiring a controlling interest in Gujarat Titans (GT).
The deal, which is subject to approval from the Board of Control for Cricket in India (BCCI), would see Torrent Group purchase a 67% stake in the team from current owners CVC Capital Partners (Irelia Company Pte Ltd).
Deal Value and Structure
The transaction is valued at approximately Rs 7,500 crore ($856 million), a significant increase from the Rs 5,625 crore (approximately $750 million in 2021) that CVC Capital Partners paid to acquire the franchise in 2021.
As part of the agreement, CVC has reportedly signed a put option for its remaining one-third stake1. The BCCI is expected to receive around 5% of the total deal amount.
Torrent Group’s Sports Ambitions
Torrent Group, with a reported valuation of Rs 41,000 crore, has been looking to expand its presence in the sports world.
In 2021, the group established Torrent Sports Ventures to diversify into sports with investments in leagues like LaLiga, Premiership Rugby, and Volleyball World.
Torrent Sports Ventures Private Limited also participated in the bidding process for new IPL teams in 2021, placing a bid of Rs 4,653 crore, but ultimately lost out to CVC Capital Partners.
CVC’s Exit and IPL Lock-In Period
CVC Capital Partners, a global private equity firm, acquired the Gujarat Titans in 2021, marking the first time a PE firm owned an IPL team.
However, the firm’s lock-in period, which prevented it from selling its stake, ended on February 10, paving the way for the Torrent Group acquisition.
This deal would represent one of CVC’s first major exits from its Indian investments.
Approval Process and Timeline
The deal is awaiting final approval from the IPL governing council. The IPL is currently processing the paperwork, and the approval is expected in the coming days.
The parties involved are aiming to finalize the deal before the start of the next IPL season, scheduled to begin in March.
