CVC Capital Partners confirmed Wednesday that Ahmedabad-based Torrent Group, a diversified conglomerate having interests in healthcare and energy sectors, through its holding company Torrent Investments Private Limited (TIPL), has entered into a definitive agreement to acquire majority stake of 67% in Indian Premier League (IPL) franchise Gujarat Titans (Irelia Sports India Private Limited) from Irelia Company Pte Ltd (Irelia) – currently fully owned by funds managed or advised by CVC.
It is worth noting that the agreement marks the first majority stake sale of an IPL team since the league’s inception in 2008, The transaction is subject to customary closing conditions and approvals (including from BCCI).
Irelia acquired Gujarat Titans for Rs 5,600 crore in 2021. The current total enterprise valuation of the IPL team is reportedly pegged at Rs 7,453 crore,
As part of the deal, Irelia will retain a substantial minority stake of 33% in the franchise. “This strategic partnership between one of India’s leading business groups and a globally renowned private equity firm, is the first of its kind in India’s sports sector and will unlock exciting opportunities for growth and collaboration,” an official release issued Wednesday states.
Jinal Mehta, son of Sudhir Mehta, chairman emeritus of Torrent Group, is overseeing the IPL investment.
Speaking on the occasion, Jinal Mehta, director, Torrent Group, said: “It is a matter of great pride for us to welcome Gujarat Titans and millions of its passionate fans into the Torrent Group. As Sports continues to gain prominence in India, Torrent sees great potential in this rapidly growing sector. With the acquisition of a majority stake in the Gujarat Titans, we are excited to have the opportunity to elevate our fan experience and unlock new growth avenues in the years to come. We are committed to nurturing the Gujarat Titans team and creating a lasting legacy for everyone involved – our fanbase, the players and our employees. With a proven track-record of delivering high quality products and services across multiple sectors, Torrent is well-positioned to set new standards of excellence in the Sports industry through the acquisition of Gujarat Titans.”
Siddharth Patel, managing partner at CVC, commented: “We are excited to announce this deal, which marks the beginning of a new chapter in India’s most popular sporting event and our team Gujarat Titans. Our participation in Indian cricket started strongly, securing the Gujarat franchise, winning the IPL title in our first season and emerging as runners up in our second season.
Amit Soni, partner at CVC, added: “We are delighted to be able to partner with Torrent, one of the most respected business groups in India. We are now very pleased to welcome the Torrent Group and look forward to unlocking new avenues for growth and development for Gujarat Titans and for the IPL in the years to come.”
Nick Clarry, managing partner at CVC, said: “CVC has a long history of investment in sports since our investments in Moto GP and Formula One, and we are extremely proud of how this investment in Gujarat Titans has developed. We particularly want to thank our fans, our management team, our players and the BCCI. Because of them, Gujarat Titans has become a leading franchise on and off the pitch, and together with the support of our wonderful fans, we expect this to accelerate with our new partners, Torrent.”
Torrent Group, valued at Rs 41,000 crore ($4.727 billion), operates across multiple industries, with Torrent Power and Torrent Pharmaceuticals being its leading subsidiaries.
Interestingly, Torrent Group had previously attempted to enter the IPL in 2021, when the BCCI held an auction to expand the league from eight to ten teams. Torrent had placed bids for Ahmedabad (Rs 4653 crore) and Lucknow (Rs 4356 crore) but lost out to CVC Capital and RPSG Group (Lucknow Super Giants’ owners). The company also attempted to secure a franchise in the Women’s Premier League (WPL) in 2023 but was unsuccessful.
Highlights
*Acquisition to mark Torrent Group’s foray into India’s rapidly growing sports sector
*CVC Funds will continue to own a substantial minority stake in Gujarat Titans
