Torrent buys 67% stake in IPL franchise Gujarat Titans for Rs 5,000 cr

Total valuation of the IPL team is pegged at Rs 7,453 cr

Ahmedabad-based Torrent Group, through its holding company Torrent Investments, on Wednesday signed an agreement to acquire 67 per cent stake in the Indian Premier League (IPL) franchise Gujarat Titans (GT) from private equity firm CVC Capital Partners, according to a company statement.

 

The billionaire Mehta family-owned group will purchase the 67 per cent stake Rs 5,000 crore, giving the franchise a total valuation of Rs 7,453 crore, a source familiar with the development said.

 

The acquisition marks Torrent Group's foray into India's rapidly growing sports sector.

 

CVC-owned Irelia Company Pte will retain a minority stake of 33 per cent in the franchise. Additionally, the transaction is subject to customary closing conditions and approvals, including from the Board of Control for Cricket in India (BCCI), the Torrent Group said.

 

 

Earlier, when BCCI had invited bids for two new teams, which also included Lucknow Super Giants in 2021, the Torrent Group had shown interest in buying GT. But CVC Capital had outbid all other bidders.

 

“As sports continue to gain prominence in India, Torrent sees great potential in this rapidly growing sector,” said Jinal Mehta, director, Torrent Group.

 

“With the acquisition of a majority stake in Gujarat Titans, we are excited to have the opportunity to elevate our fan experience and unlock new growth avenues in the years to come.”

 

Mehta said the group is committed to nurturing the GT team and creating a lasting legacy for everyone involved, including the team's fan base, players, and 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 GT,” Mehta stated.

 

CVC Capital Partners’ participation in Indian cricket started with the acquisition of the Ahmedabad-based team, said Siddharth Patel, managing partner, CVC.

 

The team officially entered the IPL in 2022 and won the title in its debut season. In the next season, GT finished as the runner-up. “We are delighted to be able to partner with Torrent, one of the most respected business groups in India,” said Amit Soni, partner, CVC, in a statement. 

 

“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.”

 

“CVC has a long history of investment in sports since our investments in MotoGP and Formula One, and we are extremely proud of how this investment in GT has developed. We particularly want to thank our fans, our management team, our players, and the BCCI. Because of them, GT 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,” Nick Clarry, managing partner at CVC, was quoted as saying.