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Adani and Torrent Compete to Buy Majority Stake in IPL’s Gujarat Titans from CVC Capital

Private equity firm CVC Capital Partners is in discussions with Adani Group and Torrent Group to sell a controlling stake in the Indian Premier League (IPL) team Gujarat Titans, according to sources. CVC aims to retain a minority stake after the sale.

The Board of Control for Cricket in India’s (BCCI) restriction on selling stakes for new teams will lift in February 2025.

Sources estimate the three-year-old franchise could be valued between $1 billion and $1.5 billion. CVC acquired the team in 2021 for ₹5,625 crore ($745 million at that time).

US investment bank Houlihan Lokey has valued the entire IPL at $16.4 billion, thanks to a $6 billion media rights deal.

Investor Interest in Gujarat Titans

BCCI’s media rights deal with Disney Star and Viacom18 in 2022 has drawn significant investor interest. Adani and Torrent, both based in Ahmedabad, are keen to buy a majority stake in Gujarat Titans. For CVC, this is a prime opportunity to profit from its investment. All parties declined to comment.

“IPL teams are attracting lots of investors due to their strong cash flows,” said a source.

Adani has prior cricket investments, owning teams in the Women’s Premier League (WPL) and UAE-based International League T20. In 2023, Adani acquired WPL’s Ahmedabad team with a top bid of ₹1,289 crore.

CVC, with ₹193 billion in assets under management, has substantial sports investments, including LaLiga, Premiership Rugby, Volleyball World, and the Women’s Tennis Association.

In 2021, BCCI added two more city-based teams to IPL. Adani and Torrent were strong contenders for the Ahmedabad franchise, bidding ₹5,100 crore and ₹4,653 crore respectively. However, CVC’s Irelia Sports India won with a higher bid. The Gujarat Titans won the IPL title in their first season, boosting their brand significantly.

For the fiscal year ending March 2023, Irelia Sports reported a net loss of ₹429 crore on revenue of ₹359 crore, with expenses at ₹789 crore. Gujarat Titans COO Arvinder Singh previously stated that the franchise expects to become profitable in the next media rights cycle, which ends in 2027. He noted that original franchises took four to five years to turn profitable and expressed confidence in the brand’s future growth.

According to Houlihan Lokey, Gujarat Titans have a brand value of $124 million, placing them eighth among IPL teams. Chennai Super Kings lead with a brand value of $231 million.

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