New Era for RCB? Diageo Considers Selling Stake in ₹16,000 Cr Franchise

New era for RCB! Such a huge amount 16,000 Cr

🇮🇳 Diageo considering selling stake in RCB

A Bloomberg report (via Economic Times and India Today) reveals that Diageo Plc—parent of United Spirits Ltd (USL), which holds RCB—is in early discussions with advisers to explore selling part or all of its stake in Royal Challengers Bengaluru.

No final decisions have been made; the process is at a preliminary stage.

The report mentions the franchise’s valuation could hit US $2 billion.

📈 Market reaction – United Spirits shares rise

Shares of USL jumped between 2–3.3% on June 10 after the news broke (trading at around ₹1,626 to ₹1,644) on the BSE/NSE

🧭 Why now?

RCB’s first-ever IPL title in June 2025 dramatically boosted the franchise’s commercial clout

Regulatory headwinds: India’s health ministry is pushing to ban surrogate alcohol/tobacco advertising in sports, which could impact Diageo’s brand visibility tied to RCB

Strategic refocus: Diageo is reportedly looking to simplify its portfolio amid pressure on liquor sales in the U.S. and global cost pressures; selling a non-core asset like RCB could free up capital.

📝 Summary

TopicDetails
What’s happeningDiageo may sell a full or partial stake in RCB, valued up to $2 billion.
StageEarly-stage advisory talks; no decisions made yet.
Market impactUSL stock up ~2–3% on June 10.
Why consider saleRegulatory pressure on alcohol ads, portfolio streamlining, and RCB’s increased valuation post-IPL win.

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