LSG Owner's Stake Sees 5% Boost Amid Reports of Rs 15,600 Crore Rajasthan Royals Acquisition

Indian Premier League Franchise Rajasthan Royals Acquired in Deal Valuing at Rs 15,600 Crore

Shares of RPSG Ventures, the owner of the IPL franchise Lucknow Super Giants, rose 5% on May 4 following the announcement of a deal to acquire the Indian Premier League franchise Rajasthan Royals. The consortium, led by steel billionaire Lakshmi Mittal and vaccine tycoon Adar Poonawalla, has agreed to acquire the team in a deal valuing the franchise at Rs 15,600 crore.

The deal includes the Rajasthan Royals' men's IPL team, as well as its sister franchises Paarl Royals in South Africa's SA20 competition and Barbados Royals in the Caribbean Premier League. Under the terms of the agreement, Mittal will hold about 75% of the franchise along with his family, while Poonawalla is set to own around 18%. Existing investors, including Manoj Badale, will retain about a 7% stake.

The completion of the transaction is subject to regulatory approval, including from the Board of Control for Cricket in India (BCCI), the antitrust watchdog, and the IPL Governing Council. This is expected to be completed in the third quarter of 2026. Following completion, Mittal, his son Aditya, and daughter Vanisha Mittal-Bhatia, Poonawalla, and Badale will join the Rajasthan Royals' board.

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Badale will continue to support the franchise in an ongoing role. This acquisition is the latest in a series of deals involving IPL franchises, with other investors looking to capitalize on the growing value of the league. In March, a consortium comprising the Aditya Birla Group, Times of India Group, Bolt Ventures, and Blackstone said it would buy IPL franchise RCB from United Spirits for $1.78 billion.

Key factors driving investor interest in the league include a doubling in the value of broadcast rights to more than $6 billion in the most recent auction in 2022, rising franchise revenues, and the Indian cricket board BCCI's pooled revenue-sharing model that bolsters team revenues.

The RPSG group acquired the Lucknow franchise for Rs 7,090 crore in November 2021. The franchise is held through RPSG Sports Private Limited. Earlier in March, Moneycontrol reported that Sanjiv Goenka-led RPSG group has joined the bandwagon of IPL franchise owners looking to monetise their cricket teams, with plans to sell a minority stake in Lucknow Super Giants (LSG). Goenka is exploring a sale of up to 15 percent, sources said.

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