Apart from the cricket field, now IPL teams can be seen fighting in the stock market as well. Yes, for the last few years speculations were being made whether IPL teams can come for listing in the stock market? Now it seems to be possible. In this regard, 2 IPL franchises have contacted BCCI and discussed about this. Right now the discussion is at the primary stage. No decision has been taken on this.
Two companies are planning listing
Three people with knowledge of the matter said that the owners of three Indian Premier League (IPL) teams have approached the Board of Control for Cricket in India (BCCI) regarding plans to raise funds. According to the information, KPH Dreams Cricket Private Limited (Kings XI Punjab) and JSW GMR Cricket Private Limited (Delhi Capitals) are considering public listing. Rajasthan Royals is planning to raise private equity fund. According to the information, two companies have approached the board for clarity on listing in the stock market. At present, the talks are at a very initial stage.
Awaiting reply from BCCI
JSW GMR Cricket, the holding company of the Delhi Capitals IPL team, said in a media report that it has sought clarity from the BCCI on the possible listing. We do not have complete clarity on whether IPL teams can go public or not. Parth Jindal, president of JSW GMR Cricket, said, "We are waiting for BCCI's response on whether the franchise is allowed to access the capital market and go public. So, till now, no IPL team has done this. Therefore, there is some regulatory uncertainty on this front. If we get approval, we will do planning with our partners in GMR.
What is Jindal's planning
Jindal said that the company has not officially contacted BCCI in this regard but has only made informal enquiries. He said that we also believe that some other teams have made official inquiries. Therefore, BCCI contacted us and said that they will give clarity at the appropriate time. Jindal said that the company can consider listing JSW GMR Cricket. Then we can also merge Pretoria Capitals and Dubai Capitals to make it a bigger cricket unit. On the other hand, there has been no response from the spokesperson of KPH Dreams, Rajasthan Royals has also not made any comment.
Many franchisees are part of listed companies
The BCCI official said that not all franchises would like to be listed as many of them are part of listed companies. For example, Mumbai Indians' holding company, Indiawin Sports Private Limited, is a wholly owned subsidiary of Reliance Industries Limited. Sunrisers Hyderabad is part of the listed company Sun TV Network, and Royal Challengers Bangalore is owned by United Spirits Limited, a Diageo Group company.
All IPL franchises are profitable
The second most valuable IPL franchise, CSK's holding company, Chennai Super Kings Cricket Limited, is owned by India Cements Limited. The company was spun off from India Cements, and its shares are available in the gray market at a valuation of around Rs 6,000 crore. On the other hand, all the IPL franchises have become profitable since the last media rights cycle. Many have now expanded into other T20 leagues in the UAE, South Africa, the Caribbean and the US Major League Cricket Championship. Some of the original IPL team owners have also purchased franchises in the Women's Premier League.
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