Torrent Group, the Ahmedabad-based multinational conglomerate has reportedly struck a deal with European private equity giant CVC Capital Partners to acquire a controlling stake in the IPL franchise Gujarat Titans once the ownership lock-in period expires in February 2025.
As per sources cited in a report by the Economic Times, CVC may still hold a 'significant minority' stake in the franchise despite anticipations around the Torrent group holding a majority stake. "Torrent and CVC have a gentleman's agreement in place for the Gujarat Titans since a formal deal can only be signed after the lock-in period ends," the source said.
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Earlier this year, reports indicated that the Gautam Adani-led conglomerate was also vying to purchase the franchise. However, according to the report, the group is believed to have withdrawn from the competition.
The sources also added that the franchise had been valued at more than $1 billion, signalling a sharp growth in the league's media rights and sponsorship revenue.
Another source cited in the report suggested that the Adani Group might have withdrawn from the race owing to the steep valuation of Gujarat Titans at a time when the group is trying to focus on its core sectors, such as power and ports business.
Moreover, this is not the first time both parties have shown keen interest in buying a stake in the franchise.
Torrent vs Adani Group
Both Adani and Torrent had previously placed bids for the IPL’s Ahmedabad franchise in 2021 but without success. Adani Group had offered Rs 5,100 crore whereas Torrent made its bid at Rs 4,653 crore.
In 2021, CVC, which holds investments in many big brands in the sports segment like La Liga, Premiership Rugby and Volleyball World, outbid both companies with a winning bid of Rs 5,625 crore.
Meanwhile, the Board of Control for Cricket in India (BCCI) is reportedly set to earn Rs 50,000 crore from media rights and sponsorships between 2023 and 2027, which together form the central revenue pool.
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