MC Exclusive: Sanjiv Goenka Considers Selling Minority Stake in Lucknow Super Giants

RP-SG Group Plans to Sell Minority Stake in Lucknow Super Giants

The RP-SG Group, led by Sanjiv Goenka, is exploring the sale of up to 15% of its stake in Lucknow Super Giants (LSG), a move that is part of a larger trend of IPL franchise owners looking to monetize their teams.

The sale of the minority stake will depend on the valuation offered by investors, and the RP-SG Group may not proceed if the offers are not attractive enough. This decision comes as investors rush to acquire other franchises, such as Royal Challengers Bengaluru (RCB) and Rajasthan Royals.

Lucknow Super Giants financials show a revenue of Rs 495.9 crore and a profit of Rs 63.7 crore for H1 FY26. The franchise generated Rs 399 crore from the Board of Control for Cricket in India (BCCI) as franchise rights in H1 FY26, and Rs 458 crore in FY25.

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The RP-SG Group acquired the Lucknow franchise for Rs 7,090 crore in November 2021 and is required to make annual franchise fee payments of Rs 709 crore till FY31. The company's capital structure is leveraged, with an overall gearing ratio of 16x as on March 31, 2025, and a total outside liabilities to total net worth ratio of 41x as on the same date.

CareEdge Ratings expects leverage to remain high and debt coverage indicators weak till FY31 due to recurring franchise fee obligations. The rating agency also noted that the company will continue to rely on promoter support and external debt in the medium term.

Key Financials:

• Revenue: Rs 495.9 crore (H1 FY26), Rs 557 crore (FY25)
• Profit: Rs 63.7 crore (H1 FY26), Rs 71.8 crore (FY25)
• Franchise fee payment: Rs 709 crore (annually till FY31)
• Gearing ratio: 16x (as on March 31, 2025)
• Outside liabilities to total net worth ratio: 41x (as on March 31, 2025)

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