Just days after Royal Challengers Bengaluru lifted their first-ever IPL trophy, reports began swirling that a major change in ownership could be on the cards.
But now, the current owner of the franchise- Diageo, through United Spirits- has broken their silence and denied all such claims.
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What was the report that triggered the buzz?
A prominent international media outlet claimed that Diageo was exploring a possible exit from the IPL by selling part or all of its stake in RCB.
The report even stated that discussions with advisors had begun and that Diageo was aiming for a franchise valuation of nearly ₹17,000 crore.
However, no confirmation came from the company’s end at the time, which led to a wave of speculation across media and investor circles.
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How did United Spirits respond to the rumours?
United Spirits, the Indian unit of Diageo, issued an official clarification on June 10 in response to a stock exchange inquiry. The statement clearly denied any such plans to sell their stake in RCB.
“This has reference to your email seeking clarification from the Company on media reports in relation to potential stake sale of RCB. The Company would like to clarify that aforesaid media reports are speculative in nature and it is not pursuing any such discussions,” the statement read, signed by Mital Sanghvi, Company Secretary.
This update was published in a regulatory filing to the Bombay Stock Exchange (BSE), putting to rest the rumours that had led to a brief rally in United Spirits’ stock price earlier in the day.
Interestingly, before the clarification came, shares of United Spirits jumped more than 3%, reaching a five-month high. The surge was largely due to excitement around the potential valuation of the franchise.