 "IPL 2023")
The Board of Control for Cricket in India (BCCI) has been intimated by owners of three Indian Premier League (IPL) teams about their capital-raising plans, according to a report by Mint.
A BCCI official was quoted as saying that Kings XI Punjab and Delhi Capitals are considering a public listing, while Rajasthan Royals aims to raise private equity funds.
A second BCCI official also confirmed that the teams approached the board for clarity on listing on bourses. At the current moment, the discussions are in the initial stage.
JSW GMR Cricket, the holding company of the Delhi Capitals IPL team, stated that it was awaiting clarity from BCCI on whether franchises are allowed to access capital markets and go public.
Parth Jindal, the chairman of JSW GMR Cricket, told Mint that none of the IPL teams have gone public so far. There is some regulatory uncertainty on this front. Once BCCI gives the clearance, GMR will make further plans regarding the listing. Jindal added that GMR has only made unofficial queries about the proposal, and BCCI has told the firm that they will provide clarity in due course.
Jindal also said that they are planning to merge Pretoria Capitals and Dubai Capitals to make it one big cricket entity, which can be taken public as a consolidated entity.
The second BCCI official added that not all franchises would want to go public as many of them are part of listed firms.
For example, Royal Challengers Bangalore is owned by United Spirits Ltd, a Diageo group company; Sunrisers Hyderabad is owned by the listed firm Sun TV Network; and Mumbai Indians' holding firm, Indiawin Sports Pvt Ltd, is a subsidiary of Reliance Industries Ltd.
India Cements Ltd owns CSK's holding company, Chennai Super Kings Cricket Ltd, which was demerged from India Cements. Chennai Super Kings Cricket Ltd's shares are available on the grey market at a valuation of around Rs 6,000 crore.
Many IPL team owners have now expanded into other T20 leagues in the Caribbean, USA, UAE, and South Africa. Mint quoted sources saying that IPL teams are looking at unlocking value.
