RPSG Ventures' Stock Price Surges 18% Amid $1.78-Billion RCB Acquisition

Indian Premier League (IPL) Franchise Valuations Rise Amid Royal Challengers Bengaluru Deal

Shares of Sun TV and RPSG Ventures, owners of IPL franchises Sunrisers Hyderabad and Lucknow Super Giants, rose 2.5% and 18%, respectively, following the $1.78-billion deal for Royal Challengers Bengaluru. The acquisition improved the valuation outlook for IPL teams.

United Spirits, the owner of RCB, saw its shares trade 1.3% lower after a consortium comprising the Aditya Birla Group, Times of India Group, Bolt Ventures, and Blackstone agreed to purchase the franchise. United Spirits had launched a strategic review of its 100% holding in RCB in November, labeling the team "non-core" to its primary alcohol business.

Royal Challengers Bengaluru's sale process attracted interest from global private equity firms, Indian tycoons, and Manchester United co-chairman Avram Glazer. The team won its first men's title in 2025 after 17 years in the league.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

As of 12:50 pm on March 25, RPSG Ventures shares were trading 18% higher at Rs 710 apiece, while those of Sun TV were trading 1% lower at Rs 610.7 apiece.

The Indian cricket board (BCCI)'s pooled revenue-sharing model and rising franchise revenues are key factors driving investor interest in the league. The value of broadcast rights has doubled to over $6 billion in the most recent auction in 2022.

RPSG Ventures 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). The group acquired the franchise for Rs 7,090 crore in November 2021.

In H1 FY26, the IPL franchise reported a revenue of Rs 495.9 crore and a profit of Rs 63.7 crore. The franchise's revenue moderated by 20% to Rs 557 crore in FY25, mainly due to lower number of matches played in the year and lower ranking of LSG in IPL season 2024.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Key Statistics:

• $1.78 billion: Royal Challengers Bengaluru deal
• 18%: RPSG Ventures share price rise
• 2.5%: Sun TV share price rise
• $6 billion: Doubling of broadcast rights value
• Rs 7,090 crore: Lucknow franchise acquisition price
• Rs 495.9 crore: LSG revenue in H1 FY26
• Rs 63.7 crore: LSG profit in H1 FY26
• Rs 557 crore: LSG revenue in FY25