Torrent Group, a major Indian business conglomerate based in Ahmedabad, is set to acquire a majority stake in Gujarat Titans (GT), the 2022 IPL champions. The deal, valued at approximately Rs 7,500 crore, is awaiting approval from the Board of Control for Cricket in India (BCCI). Currently owned by CVC Capital Partners, the European private equity firm acquired Gujarat Titans in 2021 for Rs 5,625 crore. The proposed transaction includes a put option, enabling CVC to sell its remaining one-third stake in the future. BCCI is expected to receive around 5% of the deal value, as per the original agreement.
Gujarat Titans is owned by Irelia Sports India, a CVC-backed entity. Notably, CVC Capital Partners became the first private equity firm to own an IPL team. Since its acquisition, CVC has reportedly invested around Rs 1,800 crore into the franchise. In 2021, CVC outbid competitors like Adani Group and Torrent Group, with Torrent’s initial bid at Rs 4,653 crore and Adani’s at Rs 5,100 crore. CVC has also made significant investments in global sports leagues, including Spain’s LaLiga, England’s Premiership Rugby, and Volleyball World. If the deal goes through, it will be one of CVC’s first major exits from its Indian investments.
Torrent Group, known for its pharmaceutical and power operations, has been expanding into new sectors such as sports. The group plans to route its investment through Torrent Investments Private Limited, its holding company. In 2021, Torrent established Torrent Sports Ventures to explore opportunities within the sports industry. Despite reporting a net loss of Rs 57 crore on revenues of Rs 776 crore in FY24, Gujarat Titans remain an attractive investment, with IPL franchise valuations soaring. The league’s limited team availability and strong investor interest have fueled this surge.
The IPL is projected to generate over Rs 50,000 crore from media rights and sponsorships between 2023 and 2027, with franchises receiving 50% of the revenue. IPL teams doubled their earnings in FY24, further cementing the league’s status as one of the world’s most lucrative sports properties.