IPL teams planning IPOs and stake sales?

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IPL teams planning IPOs and stake sales?
New Delhi, Mar 24: The Indian Premier League (IPL), the giant cricketing event which has also emerged as a major commercial and business force, may now be entering into stock markets as few teams mull the possibility of initial public offerings (IPO).

According to a report in a leading English newspaper, at least three out of the ten teams are either planning on getting listed on the stock exchanges or are considering partial sale of teams' stakes.

India Cements Ltd, which owns Chennai Super Kings, is expected to be the first one to jump into the stock markets.

"The management had made its intention clear to put it (CSK) separately to another company," an investment banking analyst is quoted as saying.

IPL rules prohibit the a teams' owner from exiting before three years by selling the entire stake.

"When it passes that first holding period of three years, it plans an IPO to realise the value," the source added.

However, India Cements Vice chairman and managing director N Srinivasan has brushed aside these reports as specultive. Srinivasan is also the Secretary of Board of Control for Cricket in India (BCCI).

Preity Zinta and Ness Wadia, who own the Kings XI Punjab, are also reportedly interested in divesting provided they get a satisfactory offer.

As expected the management has chosen to remain silent on this.

The new entrant, Pune team is also part of this. Sahara Adventure Sports, which won the bid for the team on Sunday, Mar 22, is also planning on an IPO or selling minority stake to a strategic partner, the report said.

"There are umpteen opportunities such as an IPO or selling stake to a new partner," a Sahara India Pariwar spokesperson told the newspaper.

Venugopal Dhoot who lost out in the auction by a narraw margin is reportedly interested in buying a minority stake in one of the existing teams.

OneIndia News

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