Royal Challengers Bengaluru: Aditya Birla Group Stocks Rally On Buying RCB For $1.8 Bn; United Spirits Falls

Aditya Birla Group stocks rally on March 25, after the announcement that the Group in a consortium with the Times of India, has acquired the IPL season's last year winner, Royal Challengers Bengaluru (RCB). Aditya Birla Capital, Aditya Birla Real Estate, Aditya Birla Sun LIFE AMC, Hindalco, Ultratech Cement and Vodafone Idea all traded higher by 2% tp 5%. On the other hand, RCB's previous owner, British liquor company, Diageo along with its subsidiary United Spirits, dropped.

Aditya Birla Group Stocks Rally:

After market hours on BSE, Aditya Birla Capital surged by 4.11%, while Aditya Birla Real Estate zoomed by 3.31%. Also, Aditya Birla Sun Life AMC gained by 3.52%. Further, Grasim rallied by 4.4%, Hindalco soared by 1.53%, Ultratech Cement gained by 4.4% and Vodafone Idea zoomed by 1.7%.

Liquor Stocks Fall:

In the previous session, Diageo stock plunged by 2.24% to $72.47 apiece. However, in the pre-market of March 25, Diageo stock gained by 2% to trade around $73.77 apiece.

Further, United Spirits stock price dropped by 1.3% to close at Rs 1,310.90 apiece on March 25.

Royal Challengers Bengaluru (RCB) Owners:

As per the regulatory filing, United Spirits declared 100% equity stake sale of Royal Challengers Sports Private Limited ("RCSPL") to a consortium comprising Aditya Birla Group ("ABG"), The Times of India Group ("Times"), Bolt Ventures ("Bolt"), and Blackstone's perpetual private equity strategy, BXPE ("Blackstone") for a total consideration of Rs 16,660 crore.

RCSPL owns and operates Royal Challengers Bengaluru ("RCB") franchises that participate in the Indian Premier League ("IPL") and Women's Premier League ("WPL"). Upon completion of this transaction, the consortium will, through its ownership of RCSPL, acquire the rights to own and operate the IPL and WPL franchise.

Praveen Someshwar, MD & CEO, USL said, "This transaction marks an important milestone for USL as we sharpen focus on our core beverage alcohol business to unlock its true potential with sustained growth, and to continue
delivering on long-term value creation for our stakeholders. RCB has grown into the most prominent and commercially successful franchise in the IPL and WPL. Guided by its 'Play Bold' philosophy and a strong competitive spirit, it has built a globally recognized brand and a passionate fan base. We are excited for the future of RCB under the stewardship of the new owner."

The consortium said, "We are proud to become custodians of RCB and grateful to USL and Diageo for the franchise they have built. RCB's championship-winning culture, its deep connection to Bengaluru, and one of the most passionate fanbases in world sport make this an extraordinary opportunity. We are committed to taking RCB to new heights, on the pitch and beyond."

Aditya Birla Group is one of India's largest and most respected conglomerates, with operations spanning over 40 countries and a legacy of over 165 years.