The Hindu Business Line : Pvt equity funds eye stake in IPL franchisees

Bangalore, March 29 Several PE (private equity) funds are eyeing the Indian cricket board’s lucrative Indian Premier League (IPL) for a stake in the franchisees.

Sources close to some of the franchisees, which include Reliance Industries, India Cements and United Spirits, told Business Line that funds such as ICICI Ventures and Kotak Private Equity Group are reportedly in talks with some of them.

Sources in ICICI Ventures said there is a possibility the company is involved in talks with Reliance Industries, which has bought the rights for the Mumbai team for Rs 441 crore. An official with Ceat Tyres, which brings out annual cricket ratings, said the company is on a ‘wait and watch’ mode before deciding on investing in the IPL.

An official with Kotak Private Equity Group, however, denied any such move.

“We are not aware of any such moves but we are not sure if any other arm of Kotak is involved in such talks,” the official said. Another PE fund official said the valuation for each team is well defined and so are the revenue streams, and hence it is easier for any investor to pick up stake.

Early this year, the Board of Control for Cricket in India (BCCI) launched an auction for eight teams representing eight cities which will take part in a series of 20:20 matches for the IPL starting from April 18. The auction yielded a whopping Rs 2,843 crore from leading corporate-houses.

An official with PE fund Sage Capital Advisers said that though the company had not taken a decision on picking a stake in any of the eight franchisees, it believes that such a move would be similar to “accessing a part of the India story”.

“Even if the stock market was performing well, PE funds or even venture capital companies would be keen to pick up a stake because there is always the possibility of these teams getting listed on the stock exchanges,” Sage Capital’s Managing Director Mr Manish Kanchan, said.

Grant Thornton’s partner for specialist advisory services, Ms C.G. Srividya said that as a business it offers private equity players a diversified investment option as it is fairly insulated from issues such as the sub-prime crisis, dollar depreciation, US slowdown and price cuts that several international-focused Indian businesses are facing today.

“Cricket is something which will never go out of fashion in India and the key success factor for the business is to sustain the interest levels by ensuring the team is in as good a form as it is now,” she said.

More Stories on : Venture Capital | Sports | Reliance Industries Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Offshoring helps keep many a UK pub in good cheer

Ispat Ind nod for Rs 509-cr preferential allotment

MIC Elec bags Rs 45-cr order from Delhi Metro

Crisil marks down Tata Motors’ cash credit facilities

IOC mulls crude supply thru pipeline from Paradip

Mercedes Benz India to relocate to Chakan next January

Pvt equity funds eye stake in IPL franchisees