Adar Poonawalla in Talks with Diageo to Acquire Royal Challengers Bengaluru IPL Team

According to multiple media reports, Adar Poonawalla, the CEO of Serum Institute of India, was in negotiations with Diageo Plc, the owners of Royal Challengers Bengaluru (RCB), to potentially purchase the Indian Premier League’s (IPL) 2025 champion. Whether Diageo Plc intends to sell all of its shares in RCB is still unclear. United Spirits is a subsidiary of Diageo Plc.

Adar Poonawalla is the front-runner among other interested parties to acquire RCB, according to media reports, according to people familiar with the situation. According to media sources, the British multinational alcoholic beverage business is seeking a valuation of about $2 billion for RCB. According to Houlihan Lokey’s IPL Valuation Study 2025 report, RCB was the most valuable company this year, even in terms of business value.

IPL Valuation Study 2025 report

In its IPL Valuation Study 2025 report, Houlihan Lokey, a global, independent investment bank established in 1972, said that RCB’s performance went beyond the boundary. Off the pitch, the team expanded match-day experiences and grassroots projects throughout Karnataka, and it welcomed tech innovator Nothing as an associate sponsor.

RCB’s brand equity has been boosted by these community-driven initiatives, astute digital marketing, and the timeless appeal of international superstars.In February, private equity firm CVC Capital Partners agreed to sell the Gujarat Titans (GT) a 67% share to Ahmedabad-based Torrent Group through its holding company Torrent Investments.

GT is valued at about INR 7,453 crore, while this deal was valued at about INR 5,000 crore. Conversely, Diageo Plc officially joined the FIFA World Cup 26 as a North, Central, and South American tournament sponsor in June.

Chinnaswamy Stadium’s Stampede Might Reduce RCB Valuation

The recent FTA (foreign trade agreement) with the UK, which reduced the tax on importing Scotch in bulk, and the negative publicity following the M Chinnaswamy Stadium stampede, according to Ajimon Francis, managing director of Brand Finance, a valuation and strategy consultancy, could put pressure on the company’s margins because of increased competition.

“Some south-based conglomerate might be the first set of potential bidders,” Francis stated, adding that it might also be a group of investors, as was the case with GT. In general, RCB’s social media fan engagement, fan clubs, and fan groups are the foundation of its brand appeal.

The second lever that RCB has is Bengaluru’s pricing power, which draws corporate interest because it has one of the highest average revenues per seat among IPL sites, according to Francis. In a recent post on X, former IPL chairman Lalit Modi stated that there have been numerous rumours regarding the sale of an IPL franchise, notably @RCBTweets, but that these have previously be– it could be the only team which would be available as a whole as an IPL franchise.”