Mumbai: Steel magnate Lakshmi Mittal will be the new majority shareholder of Rajasthan Royals, pending approvals. The Mittal family announced on Sunday that it has reached a definitive agreement to acquire IPL’s inaugural champions in partnership with Adar Poonawalla.
The Jaipur franchise’s new enterprise value will be $1.65 billion. The Mittals will hold a 75% stake and Poonawalla 18%. The remaining 7% will be retained by existing shareholders, including founder Manoj Badale.
On March 24, it was reported that tech entrepreneur Kal Somani, one of RR’s minority stakeholders, had made the winning bid to acquire the franchise in a consortium that included Rob Walton, heir to the Walmart empire and owner of NFL’s Denver Broncos, as well as Sheila Ford Hamp, owner of NFL’s Detroit Lions and a prominent member of the Ford Motor Company family. The deal, however, did not go through.
In addition to the IPL team, RR also owns Paarl Royals in South Africa’s SA20 and Barbados Royals in the Caribbean Premier League. “Completion is subject to customary closing conditions, including approvals from the BCCI, the CCI, the IPL Governing Council and other applicable regulatory authorities, and is expected to occur in Q3 2026,” a statement said.
Lakshmi Mittal, who became executive chairman of ArcelorMittal in February 2021, has his roots in Rajasthan. He was born in Sadulpur village in the state in 1950. His son Aditya Mittal could be seen taking keen interest, having become the second-largest stakeholder in NBA side Boston Celtics last year.
Lakshmi Mittal said: “I love cricket and my family is from Rajasthan, so there is no IPL team that I would rather be part of than the Rajasthan Royals. I first played cricket as a schoolboy, and since then I have been an avid fan of the sport. Many great players have worn the Rajasthan Royals shirt, including Indian icons of the sport who have been an inspiration for the younger talent. I look forward to being part of this great team and cannot wait to join all the fans pitch-side to cheer on our future success.”
Poonawalla is CEO of the Serum Institute of India (SII), a private family-owned business and the world’s largest vaccine manufacturer by volume.
He said: “I am delighted to partner with Aditya Mittal on this investment. Rajasthan Royals is a premier IPL franchise with a strong legacy, and I look forward to supporting its continued growth and long-term success.
Badale said: “It has been the privilege of a lifetime to be involved with the Rajasthan Royals from inception, and to have played a small part in building what has become the world’s most exciting and successful cricket league. I am hugely grateful to the most important people—our fans as well as our players, coaches and management teams—past and present—who have made this team what it is. We are delighted to welcome the Mittal Family and Adar Poonawalla as the new owners of the Rajasthan Royals.”
The franchise was placed on sale by Badale after he wanted out ahead of the next round of IPL media rights, which is anticipated to be challenging. The franchise valuation front, as this is a scarce asset, though continues to hit the roof. In March, an Aditya Birla Group consortium bought the Royal Challengers Bengaluru (RCB) for $1.78 billion.
The collective value of Gujarat Titans and Lucknow Super Giants from the last team expansion in 2021 was $1.6 billion. Last year, when Torrent Pharma acquired majority stakes in GT from CVC, the Ahmedabad franchise was valued in the range of $800 million.