In a significant turn of events in the Indian Premier League (IPL), Gautam Adani, India’s richest man, and the Adani Group have decided to withdraw from the race to acquire the Gujarat Titans. The Ahmedabad-based Torrent Group is now set to take over the majority stake in the franchise, which has been valued at over $1 billion (approximately ₹8,390 crores).
Change in Ownership for Gujarat Titans
According to a report by The Economic Times, the Gujarat Titans are poised for a change in ownership, with a verbal agreement already established between the current owners, CVC Capital Partners, and Torrent Group. This agreement, however, cannot be formalized until the lock-in period ends in February 2025.
The deal is expected to see Torrent Group acquire a majority stake while CVC Capital Partners retains significant minority shares. This transition marks a new chapter for the franchise, which won the IPL title in 2022 and reached the finals in 2023, although they faced a disappointing performance in the 2024 season.
Reasons Behind Adani Group’s Withdrawal
Sources indicate that the Adani Group’s decision to back out from the acquisition may be attributed to the hefty price tag associated with the deal. Additionally, the conglomerate is reportedly shifting its focus back to its core businesses, which include power and ports. This strategic pivot could be a factor in their decision to step away from the high-stakes world of cricket franchise ownership.
Interestingly, both Adani and Torrent Groups were contenders for the franchise rights when the Gujarat Titans were established in 2021. At that time, they had submitted bids of ₹5,100 crores and ₹4,653 crores, respectively, but ultimately, CVC Capital Partners secured the franchise with a winning bid of ₹5,625 crores.
The Role of the BCCI
Before the deal can be finalized, Torrent Group must obtain clearance from the Board of Control for Cricket in India (BCCI). This step is crucial to ensure compliance with all regulatory requirements and to facilitate a smooth transition of ownership.
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Torrent Group, which specializes in the power and pharmaceutical sectors, boasts a market capitalization of ₹2 lakh crores. Ahead of the 2021 auction, the group established Torrent Sports Ventures to further its ambitions in the sports domain.
The Gujarat Titans have had a rollercoaster journey in the IPL since their inception. After winning the championship in their debut season, they made it to the finals in 2023 but fell short in the subsequent season, failing to qualify for the playoffs for the first time in their brief history.
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