Recently there were reports about Royal Challengers Bangalore (RCB) that its owner company Diageo is thinking of selling it.
But now Diageo has made it clear that all this is just speculation, and there is no such plan.
On Tuesday, June 10, 2025, Diageo India denied these reports in a letter to the Bombay Stock Exchange (BSE) and said that no such discussions are taking place.
What is the whole matter?
Bloomberg had claimed in a report that Diageo is talking to advisors to sell its IPL franchise RCB. It was said in this news that the valuation of RCB could be up to US $ 2 billion (about Rs 17,000 crore).
The news came after RCB won the IPL title for the first time on June 3, 2025, but after this a tragic incident during the victory celebrations in Bengaluru also made headlines, in which 11 people died.
Diageo’s Indian company United Spirits, which owns RCB, immediately denied the news.
Company secretary Mital Sanghvi told BSE,
“These reports are just rumours. We are not talking about any such deal.”
After this clarification, shares of United Spirits jumped more than 3% and reached a high of Rs 1,644 on June 10.
RCB’s journey and Diageo’s entry
RCB was bought by Vijay Mallya in 2008, when IPL started. After Mallya’s Kingfisher Airlines shut down in 2012, Diageo took control of RCB along with his spirits business.
This year, RCB defeated Punjab Kings to win the IPL trophy for the first time, which led to tremendous enthusiasm among the fans. But the commotion outside the field and rumors of sale heated up the atmosphere.
United Spirits’ great performance
Apart from the RCB news, one of the reasons for the shine of United Spirits shares is also the strong financial performance of the company. The company’s profit grew 74.7% to Rs 421 crore in Q4FY25. Revenue grew 8.9% and EBITDA grew 37.7%.
The company has also proposed a dividend of Rs 8 per share. Brokers like HSBC and JPMorgan have also praised the company and given its stock an ‘Overweight’ rating.
Stock market boom
On June 10, United Spirits shares reached Rs 1,644, which is close to its 52-week high of Rs 1,700 in January 2025. The stock has gained 33% from its low of Rs 1,236 in June last year.
For now, Diageo has made it clear that there are no plans to sell RCB. These reports were just rumours, and the company is focusing on its business and franchise. Investor confidence and RCB’s victory have further strengthened United Spirits.
