Royal Challengers Bengaluru stake sale on cards? Diageo weighs options in IPL winner RCB; may seek valuation of $2 billion
RCB, an original IPL franchise with Virat Kohli as one of its key players, was first owned by Vijay Mallya. (PTI photo)
Diageo Plc is exploring options regarding its ownership of the Royal Challengers Bengaluru (RCB), the Indian Premier League cricket franchise, according to individuals knowledgeable about the situation.
RCB achieved their maiden
IPL
victory recently.
RCB, an original IPL franchise with
Virat Kohli
as one of its key players, was first owned by Vijay Mallya, who ran the now-defunct Kingfisher Airlines Ltd. that ceased operations in 2012. The team subsequently came under Diageo's ownership following their acquisition of Mallya's spirits operations.
Diageo, the UK-based spirits company, has initiated consultations with potential advisers to evaluate various options, including the possible stake sale of a portion or the entirety of the club, according to a Bloomberg report.
Through its Indian subsidiary, United Spirits Ltd., Diageo could value the franchise at approximately $2 billion, according to these individuals quoted in the report.
The sources indicated that the final decision remains pending and the company might opt to retain ownership.
On Tuesday morning, United Spirits' shares rose by up to 3.3% in Mumbai trading, reaching a five-month peak following reports of the potential transaction.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Good News: You May Be Richer Than You Think
FinanceAdvisors.com
Undo
These developments coincide with the Indian health ministry's efforts to prohibit the promotion of tobacco and alcohol brands in the IPL, alongside restricting sports personalities from indirect endorsement of other unhealthy products, the report said.
In India, direct advertising of tobacco and alcohol products is forbidden, although companies like Diageo have marketed alternative products such as soda using prominent cricket players.
The increasing value of IPL teams has transformed them into highly desirable sports investments. A potential sale could establish new pricing standards for future transactions in this rapidly expanding sports league.
The IPL has developed into a significant entertainment and advertising platform, comparable to the National Football League and English Premier League in commercial value. Its condensed, three-hour matches attract vast audiences across India and internationally.
Diageo faces challenges in its primary market, the US, where tariffs and reduced consumer spending affect premium spirits sales. A potential sale could provide capital whilst the company focuses on core operations and evaluates its global asset portfolio, the report said.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
18 minutes ago
- Hindustan Times
Gambhir, Morkel hold internal meeting, send ‘clear' message about Team India's plans to England pitch curator
Unlike the Australia tour last year, where the intra-squad game was shelved in a last-minute decision, the Indian team management is fully ready for the match, this time in preparations for the England Test series. India A have completed their outing against the England Lions, where they played two drawn games, and are now slated to go up against the Shubman Gill-led senior India side next week in Kent, a match that will be the team's only preparatory match for the five-Test crucial contest up ahead. The series will begin on June 20 in Leeds. In a bid to prepare, the visitors set up a training camp at the South East London venue in Beckenham as they solidify their preparations for the first bilateral Test series without its batting bigwigs Virat Kohli and Rohit Sharma, who retired from Test cricket last month, thus marking the beginning of a new era. Indian team management had an internal meeting on Tuesday, and head coach Gautam Gambhir and bowling coach Morne Morkel sent out a "clear" message on how they would want to prepare in Kent, keeping in mind the various conditions they would encounter during the England Test series. After the meeting, Gambhir spoke to Josh Marden, the head curator at Beckenham County Ground, and said that he was looking for a "realistic" pitch setting, implying an even contest between bat and bowl. While most pitches in England, especially the ones up north, have favoured the seamers, Gambhir wasn't ready to put his batters at risk just yet in the only practice matches. He hence called for a "good pitch," which could even offer some significant practice for his pace-bowling unit. "Yes, the coaching staff, including Gautam Gambhir and others, spoke to us after their internal meeting. Their message was clear: "We want a good pitch." Not something too flat or too green, but something that will genuinely help with match preparation. They wanted more realistic conditions, not just batting drills. So we adjusted a few things, grass cover, net width, and length extensions. The feedback has been great since then," Marden told Revsportz. The current strip on which India are practising is a more batting-friendly one, but Marden revealed that they took measures to offer "enough life" for the seamers. "Yes, and no. The soil here naturally plays batter-friendly, so visually, the wicket may look dry or flat. But we manage grass density, not just what you see, but how thick it is. The pitches currently used by India and Australia have slightly more grass than our usual white-ball surfaces. It's a subtle balance. Even with a brown surface, there's enough life in it for seamers, if you hit the right length," he added. Besides the preparations, the practice game will also largely hint at India's batting order for the Test series. There has been considerable speculation over the top-order line-up after Rohit and Kohli's exit, with newbie Sai Sudharsan and the returning Karun Nair set to occupy spaces in the line-up.
Economic Times
22 minutes ago
- Economic Times
SP Group offers $3.4 billion NCDs to HNI investors amid market volatility
Mumbai: Wealth managers are offering Shapoorji Pallonji Group's latest $3.4 billion (₹28,500 crore) non-convertible debentures to high-net-worth individuals, but only to those willing to invest a minimum of ₹10 crore in the secondary market. ADVERTISEMENT A small portion of the debentures, originally placed with institutional investors at a yield of 19.75%, is being sold down to wealthy clients at yields of 18.0-18.5%, allowing distributors to pocket a spread of up to 175 basis points (1.75 percentage point). During group firm Goswami Infratech's ₹14,300 crore fundraising in 2023, the bonds saw secondary market volatility as smaller HNIs flipped their positions when market sentiment turned. At one point, the debentures originally issued at a yield of 18.75% were trading at as high as 22%, following a covenant breach and a fall in perception, even before any material credit deterioration. The latest NCD offering, being an unrated and unlisted tranche, comes with much less disclosure, information and compliance obligations compared to the previous, exchange-listed tranches."Last time, a lot of HNIs panicked and exited too quickly," said a wealth manager. "It spooked the market and distorted the credit story. This time, they have raised the bar to ₹10 crore, and they are filtering for patient capital."The group has also avoided a wide domestic HNI distribution this time. Wealth managers say the allocations to Indian individuals are a fraction of the ₹28,500 crore transaction. ADVERTISEMENT Experts have been concerned over affluent and mass-affluent segments getting into credit often without a full understanding of the risks. "Private credit is not for everyone," said Nachiket Naik, head of private credit Axis Asset Management. "Family offices come through funds that do deep diligence. But direct HNI participation, especially via digital platforms, is a different beast." Cases like BluSmart, an early-stage mobility platform that raised funds from HNIs via listed NCDs, have led to caution among investors. (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
23 minutes ago
- Time of India
Wealthtech startup PowerUp Money raises $7 million from Accel, Blume, others
Live Events Bengaluru-based wealthtech startup PowerUp Money has raised $7.1 million in its first major institutional funding round, led by early-stage investors Accel Blume Ventures , and Kae Capital The round also saw participation from 8i Ventures, in April by Prateek Jindal, who was previously the cofounder at Uni Cards , the startup offers direct mutual fund investments to retail investors.'The venture was initially built as a separate platform but within Uni Cards. Post this funding round, the firm and the team have been hived off from Uni,' Jindal told ET. He added that while he continues to be a shareholder at Uni Cards, he has resigned from an executive role in the with a registered investment advisor (RIA) licence, the platform offers advisory services on its clients' mutual fund investments and also offers transactions through the said that he believes that the Indian mutual fund market will grow to 100 million users over the next three to four years from around 55 million currently, and investors would look for proper advisory services on which funds to buy and sell.'There are many competitors in the wealth management space in India, but I am targeting retail investors with a ticket size of anywhere between Rs 5 lakh and Rs 2 crore,' Jindal Money's funding round comes at a time when there is heightened activity in the Indian wealth management ecosystem. Players like Centricity, Dezerv, Angel One-backed Ionic Wealth are taking shape in this space, looking to carve out a niche in the growing market. Stock broking major Groww recently closed the acquisition of Fisdom to set foot in the wealth management space as Money wants to build a technology-led product, which will generate good-quality advisory and portfolio management services to its clients for free. The company is also offering a paid subscription service, which will offer quarterly reviews and additional services.'While this will be my customer acquisition strategy, I am looking to generate revenue from end-to-end portfolio management services, which is what I am building towards,' Jindal a team of 30-35 individuals, Jindal is looking to use the freshly raised funds for strengthening the research vertical, building more products to cater to consumer requirements, and scaling up customer acquisition.
