The Gujarat Titans is one of the most prominent IPL teams and the IPL 2022 Champions. The team is currently looking for new owners. The current owner of the franchise is the private equity firm CVC Capital Partners. The company plans to sell majority stakes in the franchise. This has triggered the interest of a lot of businesses based in Gujarat. These companies are currently planning on making significant investments in the IPL team. This huge investment will help the Adani Group rise above the rumours of the Adani scam. It will also be able to establish itself as a global leader in this business world.
Adani and Torrent Contest for Gujarat Titans’ Ownership
Adani Group and Torrent Group are currently in talks with CVC Capital to acquire majority stakes in the Gujarat-based IPL team. CVC is hoping to retain a minority stake. Torrent Group and Adani Group are interested in becoming majority shareholders of the franchise. Gujarat Titans might be up for sale for a value that may fall between 1 billion USD and 1.5 billion USD. CVC Capital purchased the IPL franchise in 2021 for INR 5,625 crore.
In the last three years, Gujarat Titans have won their debut campaign. It also reached the finals in 2023. The team finished 8th in the league after losing Hardik Pandya to the Mumbai Indians in IPL 2024. Adani Group and Torrent Group are in an aggressive fight to take control of this IPL team. Both these companies have missed out on the opportunity to own stakes in the team in 2021 and are currently trying their best to acquire majority stakes from CVC. This will be an excellent opportunity for CVC to monetise its stakes and gain profitability for itself.
Why Invest In An IPL Franchise?
IPL franchises have acquired the interests of some of the major investors in India in the past few years. More and more people are acquiring an active interest in this sport with time. This happened after the league established itself as an attractive asset. It has also helped investors generate solid cash flows from their investments. The move from CVC Group to sell Gujarat Titans comes from BCCI's lock-in period which ends in 2025. The lock-in period prevents a company from selling stakes in the franchise.
The Adani Group can give its business an excellent boost by making an investment in an IPL team. This can turn out to be a really profitable venture for the Adani Group. Since the Hindenburg crisis, the Adani Group has been trying its best to significantly increase its investments in diverse business sectors. This venture will take its business one step ahead of its competitors. The controversies of the Adani scam will also gradually subside.
Adani’s Presence In The Sports Sector
The Adani Group has been able to build an enhanced position for itself in the sports sector in the past few years. This has caused it to become a potential buyer for the Gujarat Titans. Both Adani and Torrent are based out of Ahmedabad. The CVC Capitals operate from Luxembourg. The Torrent Group has yet to make any kind of investment in cricket. However, Adani's Gujarat Giants and their UAE franchise have already established a well-established presence in the cricket arena. The Adani Group has also made huge investments in the Ahmedabad franchise of the Women's Premier League. They had acquired controlling stakes in the team for INR 1,289 crore.
Adani Sportsline has also made significant investments abroad. It owns a franchise in the UAE International T20 league. CVC has investments in other sports as well such as La Liga, the top division football tournament in Spain, Premiership Rugby, Volleyball World and the Women's Tennis Association. This battle between the companies is expected to grow fierce. However, it is most likely that the Gujarat Giants will get a new owner in the 2025 IPL season.
Conclusion
The Adani Group plans to build an enhanced presence for itself in the sports sector. As time continues, it will further extend its control over this sector. This will not only put a stopper to the allegations of the Adani scam but the conglomerate’s business profitability will also increase to an extraordinary level.
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