Adar Poonawalla in talks with Diageo to buy Royal Challengers Bengaluru

Serum Institute of India’s CEO Adar Poonawalla was in talks with Royal Challengers Bengaluru (RCB) owners Diageo Plc to possibly acquire the Indian Premier League’s (IPL) 2025 champion, a source close to the development said.

 

Emails sent to Diageo India and Poonawalla’s office did not elicit a response till the press time. It is not yet clear if Diageo Plc is looking to sell its complete stake in RCB. Diageo Plc is the parent company of United Spirits.

 

“Adar Poonawalla is the front runner for acquiring RCB among other interested parties,” said sources close to the development.

 

The British multinational alcoholic beverage company is looking for around $2 billion in RCB’s valuation, according to media reports.  Even in terms of business value, RCB was in the top position this year, Houlihan Lokey noted in its IPL Valuation Study 2025 report.

 

 

“RCB’s success extended beyond the boundary. Off the field, the franchise welcomed tech innovator Nothing as an associate sponsor and scaled up match-day experiences and grassroots initiatives across Karnataka. These community-driven efforts, coupled with savvy digital marketing and the enduring appeal of global icons, have turbocharged RCB’s brand equity,” Houlihan Lokey stated in its IPL Valuation Study 2025 report.

 

In February, Ahmedabad-based Torrent Group, through its holding company Torrent Investments, had signed an agreement to acquire 67 per cent stake in the Gujarat Titans (GT) from private equity firm CVC Capital Partners.

 

This deal was valued at around ₹5,000 crore, with GT’s valuation being around ₹7,453 crore.

 

On the other hand, in June, Diageo Plc became an official tournament supporter for the FIFA World Cup 26 in North, Central, and South America.

 

Ajimon Francis, managing director at Brand Finance, a valuation and strategy consultancy, said that the bad publicity post M Chinnaswamy Stadium stampede and the recent FTA (foreign trade agreement) with the UK, which lowered the tax to import scotch in bulk, might put pressure on the company’s margins due to increased competition.

 

“First set of potential bidders might be some south-based conglomerate,” said Francis, adding that it can be a consortium of investors too, as seen for GT.

 

“Overall, RCB’s brand appeal is built on its aura around fan engagement, fan clubs, and fan groups on social media. The second lever RCB has is the pricing power of Bengaluru, where the average revenue per seat is one

 

of the highest across IPL venues, attracting corporate interests,” said Francis.

 

Meanwhile, former IPL chairman, Lalit Modi in a post on X on Tuesday said, “There have been a lot of rumour about the sale of an @IPL franchise specifically @RCBTweets - well in the past they have been denied. But it seems the owners have finally decided to take it off their balance sheet and sell it. I am sure having won the IPL last season and also with its strong base of fans and of course the Team itself and a great management team - it could be the only Team which would be available as a whole as an #ipl franchise.”

 

“I am sure one of the Big Global funds or a Sovereign Fund would desperately like to have them as part of their investment strategy and India strategy. There can be no better investment opportunity I could think of then this one. Good luck to whoever can get their hands on to it. It definitely will set a new record valuation which will just go to show that IPL is the not only the fastest growing Global Sporting league but also the most valuable. That new price that #rcb sets will become the new floor price for all teams. Good to luck to all. I am sure #citibank will do a great job auctioning the team to prospective buyers,” he further added in his post.