Ahmedabad-based Torrent Group has reportedly reached an understanding to acquire a majority stake in Indian Premier League (IPL) franchise Gujarat Titans. Torrent has reportedly reached an understanding with private equity major CVC Capital Partners.
According to a report in The Economic Times, Adani Group was also in the fray for a pie of Gujarat Titans but stepped back, clearing the path for Torrent. The report quoted a source who said that the two parties have a “gentleman’s agreement in place for Gujarat Titans”. A formal deal can only be signed after the lock-in period ends.
Torrent is expected to acquire a majority stake while CVC is likely to retain a minority one. Gujarat Titans has been valued at over $1 billion.
As per the report Adani Group likely backed out from the race as it wants to focus on its core businesses, including power and ports.
Both Adani and Torrent had placed unsuccessful bids to acquire IPL's Ahmedabad franchise in 2021, with bids of Rs 5,100 crore and Rs 4,653 crore respectively.
CVC is already a force to reckon with in the sports ecosystem with investments in LaLiga, Premiership Rugby and Volleyball World. It had picked Gujarat Titans for Rs 5,625 crore in 2021.
On the other hand, both Adani and Torrent have separate arms for investments in sports. Adani Sportsline owns teams in the Women's Premier League, kabaddi, kho-kho and International League T20, while Torrent Sports Ventures was formed in 2021.