6 investors including Delhi Capitals co-owner, among interested parties to buy RCB: Report

Royal Challengers Bengaluru (RCB) are now seriously looking for an investor to take over the franchise right after winning their maiden IPL title. However, the quoted valuation of around $2 billion (Rs 17,592.7 crore approx.) by Diageo, the principal company which owns the franchise, has ruffled quite a few feathers, even among those who are interested in buying the franchise. As per a report, as many as six investors are interested in taking over RCB, including Adar Poonawalla of Serum Institute and Parth Jindal of the JSW Group, who co-owns the Delhi Capitals alongside the GMR group.

A few days ago, when the reports of Poonawalla being interested in buying RCB floated around, he was quick to respond on social media, saying, "At the right valuation, @RCBTweets is a great team...(sic)."

However, the report stated that Poonawalla might team up with an American investor if the talks go to that extent. Poonawalla recently bought a 50 per cent stake in Dharma Productions, the film-production company of Karan Johar and in the past, his family did explore opportunities regarding investment in an IPL side, going back to 2010.

Apart from those two, Adani Group and a Delhi-based businessman are also among the interested parties, along with a couple of private equity companies based in the US, who, as per the report, were believed to be weighing their options in terms of available funds and value they seek by going in that direction.

The parent company, a British liquor brand, is believed to have made up its mind to sell its stake in RCB, with several shareholders not happy with continued investment in an IPL team; however, there is a chance of a change of mind even at the last minute, with the interested parties from India still unsure. 

The valuation of the franchise will also depend upon the broadcaster deal, which is up for renewal in a couple of years and in the aftermath of the June 4 stampede outside the M Chinnaswamy Stadium, there are still reservations among investors about taking the franchise forward when the case is still not closed and things are still uncertain with respect to cricket getting back at the venue. The stadium had Women's World Cup matches getting snatched after the state government didn't give a go-ahead for hosting of the games at the venue.