Kolkata based Mannoj Kumar Jain may acquire upto 90% stake in Jaipur IPL Cricket Pvt Ltd- the holding company Rajasthan Royals franchisee. for around $200Mn, valuing the IPL-I champions at $222Mn.

The $222Mn valuation seems to be at the lower side when compared to $370Mn paid by the Sahara Group for the Pune Franchise in 2010, however it could still mean a tidy profit for the original promoters, who bought the franchisee rights for a total of $67Mn.

The deal needs approval from BCCI for completion as there are pending legal and regulatory issues against the team owners.

EM Sporting Holding, an offshore entity based in Mauritius, holds the entire 100% stake in Jaipur IPL Cricket Pvt Ltd. All promoters have invested through this company.

NRI businessman Suresh Chellaram, who is Lalit Modi's brother-in-law owns 44.1% stake, Emerging Media, a PE firm promoted by UK-based investor Manoj Badale owns 32.4%, Lachlan Murdoch, the eldest son of media mogul Rupert Murdoch owns 11.7% while Raj Kundra and Bollywood star Shilpa Shetty own the rest.

Everyone except Raj Kundra and Shilpa Shetty are expected to exit in this transaction. When Kundra and Shilpa Shetty bought their 11.7% stake in 2009, the team was valued twice its original acquisition price at $130Mn.

Mannoj Kumar Jain is the founder chairman of Kolkata based Jain Group of Industries. Jain Group has interests in in infrastructure, steel, energy and real estate.

Earlier the owners of Kings XI Punjab had also envinced interest in exiting the venture. The Burmans of Dabur and Ness Wadia of Bombay Dyeing were open to completely exit their 40% stake. There were talking to UK-based ISIS Equity Partners, but the didnt go through.

Previous Article

Angel Investment To Be Classified As Income, Taxed at 30%

Next Article

Vedanta Issues Bonds To Retire Debt

All Comments

Readers' Recommendations

Post a Comment

Display Name		E-mail
Comment
Comments are moderated and generally will be posted if they are on-topic and not abusive.