Adani and Torrent Groups in Talks to Acquire Stake in Gujarat Titans

Adani Group and Torrent Group are reportedly talking with private equity firm CVC Capital Partners to obtain a controlling stake in the Indian Premier League (IPL) franchise Gujarat Titans.

According to sources cited by the Economic Times, CVC is open to selling a majority stake while retaining a minority holding. The lock-in period set by the Board of Control for Cricket in India (BCCI) that prevents new teams from selling a stake will end in February 2025.

The three-year-old Gujarat Titans franchise could be valued between $1 billion and $1.5 billion. CVC Capital Partners acquired the franchise in 2021 for ₹5,625 crore.

Competitive Bidding:

An official knowledgeable about the matter commented, “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 monetize its stake in the franchise.”

Another source noted, “IPL franchises have been attracting much investor attention since the league has established itself as an attractive asset with solid cash flows.”

Investments by Adani in Cricket:

Gautam Adani has invested significantly in cricket, including acquiring teams in the Women’s Premier League (WPL) and the UAE-based International League T20. In 2023, Adani secured the WPL’s Ahmedabad franchise with a top bid of ₹1,289 crore.

Financial Outlook for Gujarat Titans:

Gujarat Titans COO Arvinder Singh expressed confidence in the franchise’s financial future, stating that it will “attain profitability in the next media rights cycle.

Even the original ten franchisees took four to five years to become profitable. We are confident that not only will we turn profitable, but our brand value will also increase exponentially.”