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IPL franchises in talks with BCCI to explore capital raising strategies: Mint
KPH Dreams Cricket, responsible for Kings XI Punjab, and JSW GMR Cricket, parent company of Delhi Capitals, are contemplating the possibility of going public.
In a recent development within the realm of the Indian Premier League (IPL), owners of three prominent franchises have initiated discussions with the Board of Control for Cricket in India (BCCI) regarding their respective capital raising strategies, according to a report by Mint.
Among the franchises, KPH Dreams Cricket, responsible for Kings XI Punjab, and JSW GMR Cricket, the parent company of Delhi Capitals, are contemplating the possibility of going public. In contrast, Rajasthan Royals is actively seeking private equity investments, the report adds
The report highlighted that these discussions are currently in their preliminary stages.
JSW GMR Cricket, the holding entity behind the Delhi Capitals IPL team, expressed its intention to seek clarification from the BCCI regarding a potential public listing. Parth Jindal, chairman of JSW GMR Cricket, emphasized the need for clarity from the BCCI on whether IPL franchises can access capital markets and go public. Jindal also revealed that no official approach had been made to the BCCI at this stage, as the inquiries were still informal. He further mentioned that other teams had also made official inquiries, and the BCCI had committed to providing clarity in due course.
Jindal hinted at the possibility of merging Pretoria Capitals and Dubai Capitals to create a consolidated cricket entity that could potentially be taken public in the future.
The second BCCI official quoted in the report clarified that not all IPL franchises might opt for public listing, particularly those already associated with publicly listed parent companies. For instance, Mumbai Indians are backed by Indiawin Sports Pvt. Ltd, a subsidiary of Reliance Industries Ltd, while Sunrisers Hyderabad operates under the umbrella of the listed company Sun TV Network. Similarly, Royal Challengers Bangalore is owned by United Spirits Ltd, a subsidiary of Diageo.
Chennai Super Kings (CSK), the second most valuable IPL franchise, falls under Chennai Super Kings Cricket Ltd, owned by India Cements Ltd. Notably, this company was demerged from India Cements, and its shares have been reportedly trading in the grey market at an approximate valuation of ₹6,000 crore, the report adds.