Sanjiv Goenka's RPSG Group is reportedly looking to sell a 15-20% stake in its Indian Premier League (IPL) franchise, Lucknow Super Giants (LSG). This strategic move aims to capitalize on the rapidly appreciating valuations of IPL teams, offering the group an opportunity to monetize part of its holding.
The potential stake sale could value the 15-20% share between $225 million and $400 million, based on an estimated overall franchise valuation of $1.5 billion to $2 billion for LSG. Sources indicate that the process of appointing a banker for the transaction has commenced, with Goldman Sachs reportedly emerging as a frontrunner, though a final decision is pending.
RPSG Group originally acquired the Lucknow franchise in November 2021 for a sum of ₹7,090 crore (approximately $800 million). LSG operates under RPSG Sports Pvt Ltd, where RPSG Ventures Ltd holds a 51% share and Kolkata-based non-banking finance company Rainbow Investments Ltd owns the remaining 49%.
The decision to explore a sale comes as the business value of the entire 10-team IPL league has surged by over 11% this year, reaching an impressive $20.6 billion, according to US investment bank Houlihan Lokey. This substantial growth underscores the increasing attractiveness and financial potential of IPL assets.
The market has recently seen high-profile transactions that reflect these robust valuations. Earlier this year, two other IPL teams changed hands: Royal Challengers Bengaluru (RCB) was sold at a valuation of $1.78 billion, and Rajasthan Royals commanded a $1.63 billion valuation. These sales highlight the strong demand and premium prices commanded by IPL franchises in the current market.