Torrent Group to acquire 67% stake in Gujarat Titans for ₹5,000 cr

Torrent Group, a business conglomerate headquartered in Ahmedabad has entered into a definitive agreement to buy a majority 67 per cent stake in Gujarat Titans — a cricket franchise that competes in the Indian Premier League (IPL) — for over ₹5,000 crore.

The group, through its holding company Torrent Investments Private Ltd (TIPL), will purchase the stake in Gujarat Titans (Irelia Sports India Private Ltd) from Irelia Company Pte Ltd currently fully owned by funds managed or advised by CVC Capital Partners, Torrent Group stated in an official statement on Wednesday. As part of the deal, Irelia will retain a substantial minority stake of 33 per cent in the franchise. The transaction is subject to customary closing conditions and approvals including from BCCI, the statement added.

Official sources told businessline that the deal between Torrent Group and CVC has valued the Ahmedabad franchise at ₹7,500 crore and Torrent may have to shell out over ₹5,000 crore for the stake.

The Ahmedabad franchise is currently owned by global private equity fund, CVC Capital Partners who had won a ₹5625 crore bid to operate it in October 2021.

Jinal Mehta, Director, Torrent Group, said, “It is a matter of great pride for us to welcome Gujarat Titans and millions of its passionate fans into the Torrent Group. As sports continues to gain prominence in India, Torrent sees great potential in this rapidly growing sector. With the acquisition of a majority stake in the Gujarat Titans, we are excited to have the opportunity to elevate our fan experience and unlock new growth avenues in the years to come. We are committed to nurturing the Gujarat Titans team and creating a lasting legacy for everyone involved – our fanbase, the players and our 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 Gujarat Titans.” The Torrent Group with ₹41,000 crore revenue and a market capitalisation of ₹2 lakh crore has a strong presence in pharmaceuticals power and city gas distribution businesses.

Siddharth Patel, Managing Partner at CVC, stated “We are excited to announce this deal, which marks the beginning of a new chapter in India’s most popular sporting event and our team Gujarat Titans. Our participation in Indian cricket started strongly, securing the Gujarat franchise, winning the IPL title in our first season and emerging as runners up in our second season.

Amit Soni, Partner at CVC, added, “We are delighted to be able to partner with Torrent, one of the most respected business groups in India. 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.”

Nick Clarry, Managing Partner at CVC, said, “CVC has a long history of investment in sports since our investments in Moto GP and Formula One, and we are extremely proud of how this investment in Gujarat Titans has developed.” The home-base for Gujarat Titans, headed by captain Shubham Gill, is Narendra Modi stadium at Motera. The new IPL season is expected to begin on March 21.