Torrent Receives CCI Approval to Acquire Majority Stake in Gujarat Titans

The Competition Commission of India has approved Torrent Group's bid to acquire a majority stake in IPL franchisee Gujarat Titans.

"The proposed combination relates to the purchase of 67 per cent of the shareholding (on a fully diluted basis) of the target (Irelia Sports India Pvt Ltd) and control by the acquirer (Torrent Investments)," according to a Wednesday notice submitted to the CCI.

Torrent Investments is the ultimate holding company for the Torrent Group.

Gujarat Titans, the Ahmedabad franchisee of the Indian Premier League, is operated by Irelia Sports India.

"The parties' (Irelia Sports India and Torrent Investments) activities show no horizontal overlap, actual/potential vertical relationship, or complementary linkages.

"Accordingly, the proposed combination is being notified under section 6(4) of the competition act," according to the notice.

The Ahmedabad-based business made its debut in the sports sector last week when it announced that it had acquired a majority stake in Gujarat Titans for an undisclosed amount.

According to a statement released on February 12, Torrent Group "has entered into a definitive agreement to acquire a majority stake of 67% in the renowned Indian Premier League (IPL) franchise Gujarat Titans" through its holding company Torrent Investments Private Limited (TIPL).

Currently owned entirely by the private equity firm CVC, Irelia Company Pte Ltd sold its majority stake in Gujarat Titans (Irelia Sports India) to the conglomerate.

The transaction is subject to customary closing conditions and approvals (including from the BCCI).

As part of the agreement, Irelia will retain a significant minority stake of 33% in the franchise.

In 2021, CVC Capital Partners acquired the Gujarat Titans franchise for Rs 5,600 crore. It was the second team to win the IPL in its inaugural season.

In recent years, Torrent Group has announced plans to expand into the electrical and diagnostic sectors, in addition to acquiring Gujarat Titans. Over the last five years, the Group's market capitalization has grown at a rate of 33% per year, reaching approximately Rs 2 lakh crore.