Poonawalla may acquire IPL team Royal Challengers Bengaluru at $1-1.2 bn valuation

Poonawalla, which has a 50% stake of filmmaker Dharma Productions, is interested in buying the whole Franchise instead of a minority shares. CNBC-TV-18 It has been reported earlier on Tuesday. Bloomberg He first reported that Diageo wanted to sell his 18 -year -old team in June, but the company rejected the report.

Diageo refused to comment on India, and Adar Poonawalla remained unanswered to its representatives.

RCB performance

At the top end, the agreement will value the royal competitors La10,600 crore or team’s revenues are more than 20 times. MY25’te, Royal Challengers Bengaluru, reported income from operations. LaThe team has a 21% (yoy) decrease in the IPL of men’s IPL 504 Crore. After the tax, the profit was over 36% La140 Crore, according to the company’s annual report, accounts for 9% of the total comprehensive income of United Spirits Ltd, which belongs to Diageo India.

However, this year, RCB won the title of the first men IPL. Influencer agency Qoruz estimated that in June, the win made the RCB the most valuable IPL franchise and the brand value exceeded $ 140 million.

Nevertheless, at 20 times income, this is a rich valuation for the team. In March, the Cricket Control Board in India cleared the offer of 67% of IPL Team Gujarat Titans from Torrent Pharma’s Special Equality (PE) company CVC Capital. The agreement made the team roughly valued La7,500 Crore, less than 10 times the team, La776 Crore.

Royal Challengers Franchise was founded in 2008 by United Spirits Ltd and later founded as one of the original IPL teams under the chairmanship of Vijay Mallia. Following Mallya’s separation of financial difficulties, Diageo indirectly seized the control of the RCB in United Spirits.

Speculation surrounding the sale of RCB was triggered by Lalit Modi, the founder of IPL to announce that Citibank advised Diageo India for the sale of the team. Citibank refused to comment.

“Global consumer companies are increasingly earning more and more money to finance or strengthen the balance sheets or strengthen the balance sheets: the latest examples are Bat, Whirlpool and Bata,” he said. “Unlike UNPS, no other major alcohol beverage company globally has sports franchises, their preferred brand visibility comes through media points, sponsorships or proxy advertising,” he added.

A few IPL teams see the agreement activity this year.

In October last year, Poonawalla’s Serene Productions acquired 50% of the filmmaker Karan Johar’s Dharma Productions. La1,000 crore. In February, Bloomberg The reported PE company Redbird Capital Partners wanted to get out of the minority stake in Rajasthan Royals last month. Vccircle American PE company Siguler Guff’un reportedly wants to invest in an IPL team, he said.

Suneera Tandon and Lata Jha contributed to this story.