RCB’s $2 billion sale valuation could spark 50% surge in SunTV-owned SRH’s worth

SunTV-owned Sunrisers Hyderabad (SRH) valuation could see a sharp re-rating following Diageo’s plans to sell IPL franchise Royal Challengers Bengaluru (RCB). Media reports suggest that Diageo is seeking a valuation close to $2 billion for RCB, the 2025 IPL Men’s champions.

According to Karan Taurani of Elara Securities, this benchmark could positively impact SRH’s valuation by nearly 50%. Assuming a 20% discount--given RCB’s relatively stronger brand value compared to other teams-- SRH could be valued at $1.5–1.6 billion.

Diageo puts RCB on sale at $2 billion valuation, Adar Poonawalla emerges as frontrunner

This would translate into SRH’s valuation contribution to SunTV rising from Rs 87 billion currently to Rs 130 billion.

“With SunTV’s market cap at Rs 215 billion, this implies a cash-adjusted core broadcasting valuation of just Rs 22 billion as against our target valuation multiple of 13x. Thus, the RCB deal could act as a stronger re-rating catalyst for SunTV-potentially a 40–50% upside from current levels—than for Diageo’s subsidiary United Spirits. That’s because SRH contributes around 45% to SunTV’s market cap, versus just 7–8% for RCB in United Spirits’ case,” Taurani explained.

Reports indicate that Diageo Plc, via its 56%-owned United Spirits Ltd, may sell either a partial or full stake in RCB to the Poonawalla Group. Industralist Adar Poonawalla’s interest in acquiring RCB is reportedly aligned with his broader diversification strategy. While discussions with other bidders are still underway, industry insiders confirmed that the franchise is seeking a one-time payment from the eventual buyer.

The $2 billion asking valuation is 18x the $111.6 million paid by Vijay Mallya in 2008.

Taurani noted that the surge in valuation is underpinned by RCB’s massive fan following, scarcity value due to limited IPL franchises, and the franchise’s strong brand recall and viewership.

According to a GroupM report RCB ranked second in TV viewership in 2025. The cricket team has the highest engagement on X (7.5 million followers), and holds the second-highest appeal on Instagram, with 21.4 million followers.

RCB’s potential sale follows a recent trend of high-value IPL transactions. For instance, in March, healthcare major Torrent Group acquired 67% stake in Gujarat Titans (Irelia Sports India Private Limited) from Irelia Company Pte Ltd (Irelia). In February, Torrent and Irelia announced a definitive agreements for the transaction, which got completed in March. As part of the transaction, Irelia holds 33% stake, maintaining its association with the franchise.