Adani and Torrent Groups compete to acquire the IPL franchise Gujarat Titans: Reports

Gujarat Titans are up for sale, as the CVC Capital Partners are in talks with Adani and Torrent Groups for the sale of majority stakes in the three-year-old IPL franchise. The Economic Times reported that the CVC Capitals is planning to sell the majority stake while keeping a minority holding.

The franchise aims to find a new owner before the next IPL season, as the Board of Control for Cricket in India’s (BCCI) lock-in period, preventing new teams from selling stakes, will conclude in February 2025.

As one of the newest teams in the IPL, the Gujarat Titans are estimated to be valued at $1 billion to $1.5 billion. It is noteworthy that CVC  bought the franchise in 2021 for ₹5,625 crore. The franchise has done exceptionally well in its short history. They have played two finals and claimed the trophy in their debut season.

An official source told ET, “Having missed out on the opportunity to own IPL’s Ahmedabad franchise in 2021, both Adani and Torrent are vying aggressively to buy a majority stake in Gujarat Titans. For CVC, it’s a great opportunity to monetise its stake in the franchise.”

Another official was quoted saying, “IPL franchises have been attracting a lot of investor attention since the league has established itself as an attractive asset with solid cash flows.”

In contrast to Torrent, the Adani Group has prior investments in cricket. The Indian business tycoon has already invested in the Women’s Premier League (WPL) and the UAE-based International League T20. Last year, he secured the WPL’s Ahmedabad franchise with a top bid of ₹1,289 crore.

CVC is well known for its investments in the sports franchise. The company has Rs 193 billion of assets under management. By now, they have invested in major sporting leagues such as the Spanish football league La Liga, Premiership Rugby, Volleyball World, and the Women’s Tennis Association.

In 2021, the BCCI floated tenders to add two more city-based teams to the IPL. Ahmedabad was one of the most hotly contested cities, with Adani Group placing a bid of Rs 5,100 crore and Torrent Group bidding Rs 4,653 crore.

CVC Capital-owned Irelia Sports acquired the Gujarat Titans in 2021 when the BCCI announced the addition of two more city-based franchises in the IPL. The Ahmedabad-based franchise faced intense competition for its ownership, with both the Adani Group and Torrent Group bidding for the team at that time too.

Houlihan Lokey reported that the Gujarat Titans had a brand value of $124 million, ranking them eighth among IPL teams. The five-time champions Chennai Super Kings led the rankings with a brand value of $231 million.

Earlier, Gujarat Titans COO Arvinder Singh stated that 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.”

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