Shares of United Spirits Ltd. climbed over 3% to ₹1,618.80 in early trade on Tuesday, emerging as the top F&O gainer, following reports that parent company Diageo Plc is exploring options for its ownership in Royal Challengers Bengaluru (RCB), the popular Indian Premier League (IPL) franchise.
According to a Bloomberg report, Diageo has held preliminary talks with advisers to evaluate the possibility of selling a part or full stake in the team, currently operated through its Indian unit, United Spirits. The company is reportedly aiming for a valuation of up to ₹17,000 crore ($2 billion). However, insiders caution that no final decision has been made and the company may ultimately choose to retain the franchise.
Ownership and history:
RCB was initially purchased by Vijay Mallya in 2008 for ₹476 crore under United Spirits, with branding linked to Mallya’s flagship alcohol products like Royal Challenge and Kingfisher. After Mallya’s exit in 2016, control passed fully to United Spirits, now managed by Diageo.
Currently, Prathmesh Mishra, Diageo India’s Chief Commercial Officer, serves as the Chairman of Royal Challengers Sports Pvt. Ltd., the entity managing RCB operations.
United Spirits also owns the RCB Women’s Team, which recently won the WPL title, adding more value to the franchise.
The report also comes amid growing regulatory pressure. India’s Health Ministry has been pushing for tighter regulations on advertising alcohol and tobacco brands in sports, including indirect promotions during the IPL.
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