Last Updated: September 13, 2024 06:16 PM
India’s wealthiest individual, Gautam Adani, and the Adani Group have decided to withdraw from the competition to acquire the Indian Premier League (IPL) franchise Gujarat Titans.
Reports from the Economic Times indicate that the Torrent Group, based in Ahmedabad, is poised to purchase a significant stake in the team.
This development follows the decision by the original owners of the Gujarat Titans, CVC Capitals, to sell a majority stake in the franchise. Since then various business entities have shown interest in acquiring a stake with the Adani Group initially seen as the frontrunner.
A preliminary agreement has been established between CVC Capitals and Torrent Group regarding the Gujarat Titans. With the Adani Group stepping back the reports indicate that Torrent Group has finalized the deal.
They have reportedly reached a verbal agreement with the current owners, CVC Capital Partners, for a transaction valued at over 1 billion USD which is approximately 8390 crores in INR.
A source close to situation confirmed the arrangement stating that a formal agreement can only be executed after the lock-in period concludes.
The lock-in period is set to end in February 2025 at which point the Torrent Group will take control of the Gujarat Titans, holding the majority share in the franchise, while the CVC Capital Partners retains a significant minority stake.
Before finalizing the deal Gujarat Titans must also secure approval from the Board of Control for Cricket in India (BCCI). The Torrent Group had previously expressed interest in acquiring the franchise but was unable to finalize the deal.
In 2021, both Torrent Group and Adani Group submitted bids to acquire the franchise rights ahead of its debut in 2022. They offered INR 4653 crores and 5100 crores, respectively, but CVC Capital Partners ultimately won the franchise with the highest bid of INR 5625 crores.
The Ahmedabad-based Torrent Group is a major player in the power and pharmaceutical sectors, boasting a market capitalization of INR 2 lakh crores. Prior to the 2021 auction for the franchise rights, they had established Torrent Sports Ventures as well.
