Gautam Adani, India's richest man, and the Adani Group have withdrawn from the battle to buy Gujarat Titans, the 2022 Indian Premier League Champions, with the majority interest scheduled to be purchased by Ahmedabad-based Torrent Group.

The Gujarat-based brand is scheduled to change ownership, with a verbal agreement in place with the present owners, CVC Capital Partners, for a deal for more than USD 1 billion (8390 crores in INR).

“Torrent and CVC have a gentleman’s agreement in place for the Gujarat Titans since a formal deal can only be signed after the lock-in period ends,” a source told The Economic Times.

The deal would only be viable after the ownership lock-in period expires in February 2025. The reported agreement would see Torrent Group acquire the majority interest, while CVC Capital Partners would retain large minority shares.

It should be remembered that both Adani and Torrent Groups competed for the Gujarat franchise rights in 2021. They bid 5100 crore and 4653 crore INR, respectively. However, CVC Capital Partners had the highest bid of 5625 crore INR.

According to the article, the Adani Group may have pulled out of the transaction due to the exorbitant price tag, as well as the company's desire to focus on its main operations, which include power and ports.

To complete the transaction, the franchise must obtain approval from the Board of Control for Cricket in India (BCCI).

The Torrent Group, situated in Ahmedabad, specializes in the power and pharmaceutical industries and has a market capitalization of INR 2 lakh crores. Before the 2021 auction for franchise rights, they had also established Torrent Sports Ventures.

Titans, after winning the 2022 title, had advanced to the finals in the 2023 season, captained by Hardik Pandya. They failed to make the playoffs in IPL 2024 after Hardik transferred to MI and Shubman Gill took over as captain.

(Economic Times Report)