United Spirits has agreed to divest its 100% stake in the subsidiary that owns the Royal Challengers Bengaluru (RCB) franchise to a consortium of investors.
In a stock exchange filing yesterday (24 March), the Diageo-controlled company said the stake sale in Royal Challengers Sports Private Limited (RCSPL) is valued at Rs166.6bn ($1.78bn).
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The consortium comprises Indian conglomerate Aditya Birla Group, The Times of India Group, venture capital firm Bolt Ventures and Blackstone’s private-equity fund BXPE.
With the deal, the consortium will take ownership of the RCB teams that participate in the Indian Premier League (IPL) and Women’s Premier League (WPL).
In November, United Spirits started a review of its RCSPL holding, describing it as “non-core” to its primary alcohol business.
The maker of McDowell’s No.1, Royal Challenge and Signature whiskies had first acquired the stake in 2008.
RCSPL accounted for 1.9% of United Spirit’s revenue from operations and 4.1% of its net worth in financial year 2024-25, according to the stock exchange filing.
Praveen Someshwar, the former PepsiCo executive who became CEO of United Spirits last year, said: “This transaction marks an important milestone for USL as we sharpen focus on our core beverage alcohol business to unlock its true potential with sustained growth, and to continue delivering on long-term value creation for our stakeholders.”
The transaction involves the sale of 14,690 equity shares.
It is expected to close within six months, subject to approvals from regulatory bodies including the Board of Control for Cricket in India (BCCI) and t he Competition Commission of India.
Director of the Aditya Birla Group Aryaman Vikram Birla will chair the franchise under the new ownership, while Satyan Gajwani of The Times of India Group will become vice chairman, a statement from the Aditya Birla Group said.
Aryaman Vikram Birla added: “It is a privilege to come together in this partnership to shape the next phase of growth for RCB. This partnership brings together a deep understanding of sports, media and consumer businesses.”
