With recent stock market crash, private equity players are scouting for IPL teams as an alternative investment. The focus of their investment is the franchisee owners.The franchisee owners are locked in talks with these players to offload a part of their stakes in their respective teams.
Investment banking sources say, many team owners are in the market to raise funds. "We are given to understand that minority stakes will be diluted by the owners. Names of franchisees going around include Deccan Chronicle (Hyderabad), Vijay Mallya (Bangalore), Ness Wadia and Preity Zinta (Mohali) and Shah Rukh Khan's Red Chillies Entertainment (Kolkata)," an investment banker, who did not wish to be named, said.
Chennai Super Kings, the team owned by India Cements (ICL), has been approached by private equity investors. Admitted N Srinivasan, vice chairman and MD, India Cements: "A few private equity investors met me. They were interested in knowing if I would be willing to dilute my stake in the team's equity. I have told them that we are not in favour of diluting to anybody for the moment."
Read more in The Times of India article
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