Diageo Sets Mid-March Deadline for Binding Bids on Royal Challengers Bengaluru Stake

Diageo Sets Mid-March Deadline for Binding Bids on Royal Challengers Sports Private Limited

Key Figures:

• Mid-March: Deadline for submission of binding bids
• March 10: Expected conclusion of due diligence by shortlisted bidders
• $2 billion: Estimated 100% stake ask in RCSPL
• $1.5 billion - $1.7 billion: Expected valuation range of RCSPL by prospective suitors

Company Updates:

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• Royal Challengers Sports Private Limited (RCSPL): Subsidiary of United Spirits, owned by Diageo
• United Spirits: Indian arm of global liquor giant Diageo
• Royal Challengers Bengaluru (RCB): Cricket franchise team owned by RCSPL, participating in IPL and WPL tournaments

Sale Process:

• November 2025: Strategic review of RCSPL initiated by Diageo, targeting conclusion by March 31, 2026
• February 16, 2026: Around 9-10 parties shortlisted for next stage of RCB sale process
• February 5, 2026: Non-binding bids submitted by Dr. Ranjan Pai, Adar Poonawalla, EQT, and Premji Invest

Suitors:

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• Serum Institute of India: Led by CEO Adar Poonawalla
• Manipal Group: Led by Chairman Dr. Ranjan Pai
• Lancer Capital LLC: Backed by Avram Glazer, co-owner of Manchester United
• Blackstone: Private equity giant
• QIA (Qatar Investment Authority): Potential suitor
• Carlyle: Potential suitor
• TPG: Linked with possible tie-up with Adar Poonawalla
• KKR: US private equity major exploring participation with Manipal Group
• Temasek: Singapore-based investment firm exploring participation with KKR

M&A Activity:

• Torrent Group: Acquired 67% stake in Gujarat Titans from CVC Capital Partners in February 2025
• Rajasthan Royals: Majority stake sale process underway, targeting valuation of $1 billion-plus
• Kolkata Knight Riders: Part stake sale brewing, with Mehta Group planning to unlock value