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What is the story about?
Billionaires Ranjan Pai and Adar Poonawalla, as well as Swedish buyout firm EQT and Premji Invest, have submitted separate non-binding bids for Royal Challengers Sports Pvt Ltd (RCSPL), a unit of United Spirits, people familiar with the matter told Moneycontrol.
On January 28, Moneycontrol was the first to report that non-binding bids for the high-profile deal had been sought by early February, amid a frenzy of more than 50 non-disclosure agreements by interested parties. The report had added that Manipal Group chairman Pai had entered advanced discussions to form a consortium with US private equity major KKR, with Singapore’s Temasek also exploring participation as the third investor in the combine, if required. Investment bank Citi was running the sell-side process, the report added further.
Serum Institute of India’s CEO Poonawalla back in October had referred to the RCB divestment on X, saying "at the right valuation, @RCBTweets is a great team." Later he posted, "Over the next few months, will be putting in a strong and competitive bid for @RCBTweets, one of the best teams in the IPL."
RCSPL’s business comprises ownership of the popular Royal Challengers Bengaluru (RCB) franchise team, which participates in the men's Indian Premier League (IPL) and Women's Premier League (WPL) cricket tournaments hosted annually by the BCCI.
The submission of proposals follows a strategic review of RCSPL (non-core to USL’s alcobev business) initiated in November and expected to conclude by March 31, 2026.
"The deadline for the submission of non-binding bids was earlier this week, on February 2, i.e Monday and the process has received multiple non-binding bids, possibly near double digit, from strategics as well as sponsors or private equity firms," said one of the persons above.
Also Read: Nvidia's AI chip sale to ByteDance hinges on conditions set by Trump administration
A second person said that a shortlist of suitors would be decided within the next week or ten days. Due diligence on the proposed transaction will follow.
According to a third person, "EQT has signed big cheques in the past in India and Premji Invest is eyeing not the entire 100 percent stake in RCSPL, but a majority stake instead. All options are on the table and depending on the investment strategy, one cannot rule out these funds joining hands with other suitors if required."
A fourth person added, "The non-binding bids by Dr Pai and Adar Poonawalla are likely to have not specified any partners for now, which can be finalised at a later stage."
Private equity giant Blackstone is also planning to submit a potential non-binding bid, but no final decision has been taken, a fifth person said.
There is also industry buzz about the possible interest and participation of QIA (Qatar Investment Authority) and Carlyle in the process, but Moneycontrol could not independently confirm the same.
All the five persons above spoke to Moneycontrol on the condition of anonymity.
In response to a detailed email query from Moneycontrol, USL parent Diageo, EQT, Premji Invest , Adar Poonawalla and Blackstone declined to comment. An email sent to the Manipal Group remained unanswered at the time of publishing this article. An immediate comment couldn’t be ascertained from QIA and Carlyle.
"Though the sell-side ask for a 100% stake in RCSPL is around $2 billion, a few prospective suitors are keen to value the target between $1.5 billion to $1.7 billion. Further clarity will emerge on valuations post due diligence, during the binding bid stage. Investment bank Citi is steering the mega transaction," the Moneycontrol report of January 28 had elaborated.
Race for RCB: Who are the other potential suitors?
On January 23, ‘The State of Play’ first reported that Temasek was exploring a partnership with Pai and private equity major TPG is backing Poonawalla. It also reported that The Times of India Group, whose digital arm, Times Internet, owns Cricbuzz and Willow TV, was evaluating both Royal Challengers Bengaluru as well as Rajasthan Royals.
Incidentally, in early 2025, a consortium of tech head honchos including Satya Nadella, Sundar Pichai, and Times Internet VC Satyan Gajwani acquired a 49% stake in The Hundred‘s London Spirit for a staggering £295 million.
Additionally, Bloomberg reported earlier that a consortium led by US entrepreneur Kal Somani was in the race for Rajasthan Royals. Interestingly, he is an existing investor in the IPL team. It was immediately unclear if Somani had also placed a non-binding bid for RCB. Private equity giants Blackstone and Carlyle were also named by Bloomberg and Mint as potential suitors for the Diageo owned franchise.
Private equity firms have invested and exited IPL teams in the past. In February 2025, the Torrent Group acquired a 67% stake in Gujarat Titans from private equity firm CVC Capital Partners, valuing the team at around ₹7,500 crore ( $833 mn) as per reports.
Also Read: Nestle widens infant formula recall after EU requests new toxin analysis
M&A action in IPL
Over and above RCB, there are parallel stake sale processes underway at other IPL teams as well.
On December 8, 2025, Moneycontrol had reported that a majority stake sale process was underway at Rajasthan Royals, the winner of the inaugural IPL, targeting a valuation of $1 billion plus, with The Raine Group roped in as the sell-side advisor. The same suitors may evince interest in both Rajasthan Royals and RCB, the report highlighted.
The report also indicated that depending on the strategy of the incoming buyer and the lead investor Manoj Badale, a 100% stake in Rajasthan Royals may be available if feasible to all stakeholders. Badale can also exercise the option of ceding control but holding onto a part stake and not making a complete exit from the team, it added.
British-Indian entrepreneur Manoj Badale's Emerging Media Ventures holds around 65 per cent stake in Rajasthan Royals as per reports, with minority investors including American investment management firm RedBird Capital Partners ( around 15 per cent stake) and Fox Corporation's Lachlan Murdoch, among others.
Later on December 18, 2025, Moneycontrol was the first to report that a part stake sale was brewing at Kolkata Knight Riders.
The KKR franchise is owned by Knight Riders Sports Private Ltd, which was set up in 2008 as a joint venture between Bollywood superstar Shah Rukh Khan's Red Chillies Entertainment and actress Juhi Chawla and industrialist Jay Mehta-backed Mehta Group.
According to reports, Red Chillies Entertainment owns a majority stake of 55% in the joint venture, Mehta Group owns the balance 45% stake, and the trio of Khan, Chawla and Mehta (Chawla's husband) paid around $75 million for the team in the inaugural IPL auction.
"Unlike RCB and RR, which are exploring a proposed majority stake sale, when it comes to KKR, only the Mehta group plans to offload a minority stake and unlock value. Investment bank Nomura has been mandated as an advisor,” the Moneycontrol report had said.
Why is the IPL a lucrative opportunity?
As per the "IPL Valuation Study 2025" by Houlihan Lokey, the IPL business value has risen to $18.5 billion from $15.4 billiojn in 2023. On the other hand, the IPL brand value rose to $3.9 billion from $3.2 billion in 2023.
As per the study, RCB maintained the top position on the brand value chart ($269 million), followed by Mumbai Indians ($242 million), Chennai Super Kings ($235 million) and Kolkata Knight Riders ($227 million).
The study also highlighted the difference between the IPL and global sports leagues like the NBA and EPL when it came to aspects like transfer fees and operating costs.
"From a dealmaker’s lens, IPL represents a near-perfect blend of predictable cash flows and cost discipline, a rarity in the global sports asset universe. Revenues are underwritten by BCCI’s long-term, well-negotiated media rights contracts and front-loaded sponsorship deals, creating annuity-like cash flows.
The top franchisees clock ~₹6,500 million to ~₹7,000 million in annual revenues, with up to 80% visibility secured before the start of the tournament. On the cost side, the presence of a salary cap (₹1,200 million per team) functions as an embedded margin protector, preventing wage inflation (a major concern for global sports teams) and ensuring competitive parity among teams.
Moreover, franchisees operate with minimal fixed-asset exposure, benefitting from ready access to stadium infrastructure already created by BCCI, translating into a capital-light model with structurally high return on employed capital," the report said.
The study added, "When benchmarked against global peers like EPL and NBA teams that wrestle with high player transfer fees, variable wages, and high stadium operating costs (including servicing stadium debt), IPL franchisees operate with an asset-light, revenue-guaranteed model, a structure that not only cushions downside risk but also amplifies operating leverage on the upside. For institutional investors, this makes the IPL not just a sports league but a high-growth compounder in the entertainment space, catering to a fast-growing fan base with rising disposable income and a strong appetite for premium digital experiences."
Also Read: Nike faces US federal probe over allegations of 'DEI-related' discrimination against white workers
On January 28, Moneycontrol was the first to report that non-binding bids for the high-profile deal had been sought by early February, amid a frenzy of more than 50 non-disclosure agreements by interested parties. The report had added that Manipal Group chairman Pai had entered advanced discussions to form a consortium with US private equity major KKR, with Singapore’s Temasek also exploring participation as the third investor in the combine, if required. Investment bank Citi was running the sell-side process, the report added further.
Serum Institute of India’s CEO Poonawalla back in October had referred to the RCB divestment on X, saying "at the right valuation, @RCBTweets is a great team." Later he posted, "Over the next few months, will be putting in a strong and competitive bid for @RCBTweets, one of the best teams in the IPL."
RCSPL’s business comprises ownership of the popular Royal Challengers Bengaluru (RCB) franchise team, which participates in the men's Indian Premier League (IPL) and Women's Premier League (WPL) cricket tournaments hosted annually by the BCCI.
The submission of proposals follows a strategic review of RCSPL (non-core to USL’s alcobev business) initiated in November and expected to conclude by March 31, 2026.
"The deadline for the submission of non-binding bids was earlier this week, on February 2, i.e Monday and the process has received multiple non-binding bids, possibly near double digit, from strategics as well as sponsors or private equity firms," said one of the persons above.
Also Read: Nvidia's AI chip sale to ByteDance hinges on conditions set by Trump administration
A second person said that a shortlist of suitors would be decided within the next week or ten days. Due diligence on the proposed transaction will follow.
According to a third person, "EQT has signed big cheques in the past in India and Premji Invest is eyeing not the entire 100 percent stake in RCSPL, but a majority stake instead. All options are on the table and depending on the investment strategy, one cannot rule out these funds joining hands with other suitors if required."
A fourth person added, "The non-binding bids by Dr Pai and Adar Poonawalla are likely to have not specified any partners for now, which can be finalised at a later stage."
Private equity giant Blackstone is also planning to submit a potential non-binding bid, but no final decision has been taken, a fifth person said.
There is also industry buzz about the possible interest and participation of QIA (Qatar Investment Authority) and Carlyle in the process, but Moneycontrol could not independently confirm the same.
All the five persons above spoke to Moneycontrol on the condition of anonymity.
In response to a detailed email query from Moneycontrol, USL parent Diageo, EQT, Premji Invest , Adar Poonawalla and Blackstone declined to comment. An email sent to the Manipal Group remained unanswered at the time of publishing this article. An immediate comment couldn’t be ascertained from QIA and Carlyle.
"Though the sell-side ask for a 100% stake in RCSPL is around $2 billion, a few prospective suitors are keen to value the target between $1.5 billion to $1.7 billion. Further clarity will emerge on valuations post due diligence, during the binding bid stage. Investment bank Citi is steering the mega transaction," the Moneycontrol report of January 28 had elaborated.
Race for RCB: Who are the other potential suitors?
On January 23, ‘The State of Play’ first reported that Temasek was exploring a partnership with Pai and private equity major TPG is backing Poonawalla. It also reported that The Times of India Group, whose digital arm, Times Internet, owns Cricbuzz and Willow TV, was evaluating both Royal Challengers Bengaluru as well as Rajasthan Royals.
Incidentally, in early 2025, a consortium of tech head honchos including Satya Nadella, Sundar Pichai, and Times Internet VC Satyan Gajwani acquired a 49% stake in The Hundred‘s London Spirit for a staggering £295 million.
Additionally, Bloomberg reported earlier that a consortium led by US entrepreneur Kal Somani was in the race for Rajasthan Royals. Interestingly, he is an existing investor in the IPL team. It was immediately unclear if Somani had also placed a non-binding bid for RCB. Private equity giants Blackstone and Carlyle were also named by Bloomberg and Mint as potential suitors for the Diageo owned franchise.
Private equity firms have invested and exited IPL teams in the past. In February 2025, the Torrent Group acquired a 67% stake in Gujarat Titans from private equity firm CVC Capital Partners, valuing the team at around ₹7,500 crore ( $833 mn) as per reports.
Also Read: Nestle widens infant formula recall after EU requests new toxin analysis
M&A action in IPL
Over and above RCB, there are parallel stake sale processes underway at other IPL teams as well.
On December 8, 2025, Moneycontrol had reported that a majority stake sale process was underway at Rajasthan Royals, the winner of the inaugural IPL, targeting a valuation of $1 billion plus, with The Raine Group roped in as the sell-side advisor. The same suitors may evince interest in both Rajasthan Royals and RCB, the report highlighted.
The report also indicated that depending on the strategy of the incoming buyer and the lead investor Manoj Badale, a 100% stake in Rajasthan Royals may be available if feasible to all stakeholders. Badale can also exercise the option of ceding control but holding onto a part stake and not making a complete exit from the team, it added.
British-Indian entrepreneur Manoj Badale's Emerging Media Ventures holds around 65 per cent stake in Rajasthan Royals as per reports, with minority investors including American investment management firm RedBird Capital Partners ( around 15 per cent stake) and Fox Corporation's Lachlan Murdoch, among others.
Later on December 18, 2025, Moneycontrol was the first to report that a part stake sale was brewing at Kolkata Knight Riders.
The KKR franchise is owned by Knight Riders Sports Private Ltd, which was set up in 2008 as a joint venture between Bollywood superstar Shah Rukh Khan's Red Chillies Entertainment and actress Juhi Chawla and industrialist Jay Mehta-backed Mehta Group.
According to reports, Red Chillies Entertainment owns a majority stake of 55% in the joint venture, Mehta Group owns the balance 45% stake, and the trio of Khan, Chawla and Mehta (Chawla's husband) paid around $75 million for the team in the inaugural IPL auction.
"Unlike RCB and RR, which are exploring a proposed majority stake sale, when it comes to KKR, only the Mehta group plans to offload a minority stake and unlock value. Investment bank Nomura has been mandated as an advisor,” the Moneycontrol report had said.
Why is the IPL a lucrative opportunity?
As per the "IPL Valuation Study 2025" by Houlihan Lokey, the IPL business value has risen to $18.5 billion from $15.4 billiojn in 2023. On the other hand, the IPL brand value rose to $3.9 billion from $3.2 billion in 2023.
As per the study, RCB maintained the top position on the brand value chart ($269 million), followed by Mumbai Indians ($242 million), Chennai Super Kings ($235 million) and Kolkata Knight Riders ($227 million).
The study also highlighted the difference between the IPL and global sports leagues like the NBA and EPL when it came to aspects like transfer fees and operating costs.
"From a dealmaker’s lens, IPL represents a near-perfect blend of predictable cash flows and cost discipline, a rarity in the global sports asset universe. Revenues are underwritten by BCCI’s long-term, well-negotiated media rights contracts and front-loaded sponsorship deals, creating annuity-like cash flows.
The top franchisees clock ~₹6,500 million to ~₹7,000 million in annual revenues, with up to 80% visibility secured before the start of the tournament. On the cost side, the presence of a salary cap (₹1,200 million per team) functions as an embedded margin protector, preventing wage inflation (a major concern for global sports teams) and ensuring competitive parity among teams.
Moreover, franchisees operate with minimal fixed-asset exposure, benefitting from ready access to stadium infrastructure already created by BCCI, translating into a capital-light model with structurally high return on employed capital," the report said.
The study added, "When benchmarked against global peers like EPL and NBA teams that wrestle with high player transfer fees, variable wages, and high stadium operating costs (including servicing stadium debt), IPL franchisees operate with an asset-light, revenue-guaranteed model, a structure that not only cushions downside risk but also amplifies operating leverage on the upside. For institutional investors, this makes the IPL not just a sports league but a high-growth compounder in the entertainment space, catering to a fast-growing fan base with rising disposable income and a strong appetite for premium digital experiences."
Also Read: Nike faces US federal probe over allegations of 'DEI-related' discrimination against white workers
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