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KKR explores minority stake sale as IPL franchise dealmaking gathers pace
Investment bank Nomura is said to be advising on a potential minority stake sale by the Mehta Group, even as IPL franchises attract billion-dollar valuations.
Deal activity around Indian Premier League (IPL) franchises is intensifying, with Kolkata Knight Riders (KKR) emerging as the latest team to explore a transaction. Multiple industry sources told Moneycontrol that a minority stake sale is being evaluated at the Shah Rukh Khan-backed franchise, even as peers Royal Challengers Bengaluru (RCB) and Rajasthan Royals (RR) consider larger ownership changes.
KKR is owned by Knight Riders Sports Private Ltd, a joint venture formed in 2008 between Red Chillies Entertainment, promoted by actor Shah Rukh Khan, and the Mehta Group, backed by Juhi Chawla and industrialist Jay Mehta. Red Chillies Entertainment is understood to hold a 55 percent stake, while the Mehta Group owns the remaining 45 percent.
Unlike RCB and RR, which are exploring majority or controlling stake sales, sources indicated that only the Mehta Group is considering divesting a minority holding in KKR to unlock value. The discussions are said to be at an early stage, with the size of the stake and valuation still under evaluation.
According to people familiar with the matter, investment bank Nomura has been appointed as the sell-side advisor for the proposed transaction. The process could be formally launched in early 2026, although deal contours may evolve depending on investor interest and market conditions.
When contacted, a KKR spokesperson declined to comment, citing the sensitivity of the information. Red Chillies Entertainment, Jay Mehta, Juhi Chawla, the Mehta Group and Nomura did not respond to queries at the time of publication.
KKR is among the most successful franchises in IPL history, having lifted the trophy three times in 2012, 2014 and most recently in 2024. The team also finished runners-up in the 2014 Champions League T20 and the 2021 IPL season. Eden Gardens in Kolkata serves as the franchise’s home ground.
Beyond the IPL, Knight Riders Sports has built a global cricket footprint, owning Trinbago Knight Riders in the Caribbean Premier League, Abu Dhabi Knight Riders in the UAE’s ILT20, and Los Angeles Knight Riders in Major League Cricket in the US.
The potential KKR transaction comes against the backdrop of heightened M&A interest in the IPL ecosystem. Rajasthan Royals’ promoters have initiated discussions around a controlling stake sale at a valuation of over $1 billion, while United Spirits Ltd is reviewing its investment in Royal Challengers Bengaluru, reportedly seeking a valuation of around $2 billion.
Investor appetite for IPL teams has been fuelled by the league’s strong financial fundamentals. According to Houlihan Lokey’s IPL Valuation Study 2025, the overall business value of the league has climbed to $18.5 billion, while brand value has risen to $3.9 billion. KKR’s brand value was estimated at $227 million, ranking fourth among franchises.
The study highlights that long-term media rights, centralised revenue sharing and a strict salary cap give IPL teams predictable cash flows and margin protection, features that are increasingly attractive to global institutional investors.
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