Gambhir set to take minority stake in Delhi Capitals: Report

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NEW DELHI: Former India opener Gautam Gambhir, who played for two Indian Premier League franchises in his career (Delhi and Kolkata), is reportedly set to buy a 10% stake in the Delhi Capitals, which is currently a 50:50 JV between JSW and GMR. 

Gambhir is looking to buy 10% stake for Rs 1 billion, Times of India reports.

TOI quotes a source close to the developments as having said that a formal announcement would be made in a "matter of days".

“The matter has been discussed for the last few months and it is only a matter of days,” said source told the daily.

For the record, when the JSW Group took a 50% stake in the franchise (then known as Delhi Daredevils), they had paid out Rs 5.5 billion at an enterprise valuation of Rs 11 billion. 

Soon after JSW came on board the team was rechristened Delhi Capitals.

If the TOI report is correct, the immediate question is why is the equity dilution happening at a lesser valuation than when JSW bought in to the franchise?

After all Dehli Capitals saw instant success after JSW's entry, with the team finishing an impressive third place in IPL 12.