United Spirits sells Royal Challengers franchise stake for US$1.78B
United Spirits exits RCB ownership in $1.78 billion deal, shifting focus to core alcohol business as a consortium led by Aditya Birla Group takes control.
INDIA – United Spirits has entered into definitive agreements to sell its 100% equity stake in Royal Challengers Sports Private Limited (RCSPL) to a consortium of investors for INR 166.6 billion (US$1.78 billion).
The investor consortium includes the Aditya Birla Group, The Times of India Group, venture capital firm Bolt Ventures and Blackstone’s private equity fund BXPE.
Following the transaction, the group will take ownership of the Royal Challengers Bangalore (RCB) teams competing in the Indian Premier League (IPL) and Women’s Premier League (WPL).
United Spirits originally acquired the Bengaluru-based IPL franchise in 2008 for $11.6 million, the same year the league was established. The company initiated a strategic review of its RCSPL stake in November, describing it as “non-core” to its primary beverage alcohol business.
According to a stock exchange filing, RCSPL contributed 1.9% of United Spirits’ revenue from operations and 4.1% of its net worth in the 2024–25 financial year.
The transaction involves the sale of 14,690 equity shares and is expected to close within six months, subject to regulatory approvals from the Board of Control for Cricket in India (BCCI) and the Competition Commission of India.
Praveen Someshwar, Chief Executive Officer of United Spirits, said the divestment aligns with the company’s strategic priorities. “This transaction marks an important milestone for USL as we sharpen focus on our core beverage alcohol business to unlock its true potential with sustained growth, and to continue delivering on long-term value creation for our stakeholders,” he said.
Under the new ownership structure, Aryaman Vikram Birla, Director of the Aditya Birla Group, will serve as Chairman of the franchise, while Satyan Gajwani of The Times of India Group will take on the role of Vice Chairman.
Aryaman Vikram Birla said the consortium aims to build on the franchise’s growth trajectory. “It is a privilege to come together in this partnership to shape the next phase of growth for RCB. This partnership brings together a deep understanding of sports, media and consumer businesses,” he said.
The transaction comes as Diageo, the UK-based parent company of United Spirits, continues to strengthen its presence in India.
The group reported an 8.7% increase in sales in the country during the second half of 2025, driven by brands such as Royal Challenge, Black & White, Signature whiskies and Smirnoff vodka.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
