The Ahmedabad based Torrent Group has reached an agreement with European private equity firm CVC Capital Partners to acquire a majority stake in the IPL team Gujarat Titans after the ownership lock-in period ends in February 2025, according to a newspaper report.
The Adani Group, led by Gautam Adani, was also interested in acquiring Gujarat Titans but is believed to have withdrawn. Sources state that Torrent and CVC have a verbal agreement in place, but a formal deal can only be signed after the lock-in period. While Torrent is expected to acquire a majority stake, CVC may still retain a minority share. The franchise is valued at over $1 billion, reflecting the rising revenue from the IPL’s media rights and sponsorship deals.
The report also suggests that Adani Group may have pulled out due to the high price and its focus on core sectors like power and ports. In 2021, both Adani and Torrent unsuccessfully bid for the IPL’s Ahmedabad franchise, with CVC winning the bid.
The BCCI is set to generate Rs 50,000 crore in revenue from media rights and sponsorships between 2023 and 2027, with IPL franchises relying heavily on this central revenue pool. Gujarat Titans, owned by CVC-backed Irelia Sports India, posted a net loss of Rs 429 crore on revenue of Rs 359 crore in FY23 but is expected to see a significant revenue boost due to increased central pool income.
Torrent Group, which operates in power and pharmaceuticals, has a market cap of nearly Rs 2 lakh crore, while Adani Enterprises has a market cap of Rs 3.39 lakh crore. Both companies have sports investment arms, with Torrent setting up Torrent Sports Ventures ahead of the IPL team auction in 2021.