RCB stake sale to Adar Poonawalla: United Spirits shares clarification; shares react
Shares of United Spirits inched higher on Wednesday after it shared its clarification over media reports regarding stake sale of its cricket franchise Royal Challengers Bengaluru.
- Oct 1, 2025,
- Updated Oct 1, 2025 9:43 AM IST
Shares of United Spirits inched higher on Wednesday after the brewery's company shared its clarification over media reports regarding stake sale of its cricket franchise Royal Challengers Bengaluru (RCB). The company shares its clarification after the market hours on Tuesday, September 30.
In its response via an exchange filing, United Spirits said that it would not like to comment as it does not respond to market speculation. Shares of United Spirits jumped nearly 2 per cent to Rs 1,349.90 on Wednesday, commanding a marketcap close to Rs 98,000 crore. Shares of United Spirits have dropped nearly 21 per cent from its 52-week high at Rs 1,700, hit in March 2025.
According to some media reports, Global spirits major Diageo, the parent company of United Spirits and owner of Indian Premier League (IPL) franchise RCB had initiated the process to sell its stake in the team seeking a valuation close to $2 billion (Rs 17,500 crore). The brewer was reportedly evaluating the interest shown by Serum Institute’s owner Adar Poonawalla.
Global investment bank Citi has been appointed as transaction advisor. If the reported stake sale is said to be true, the RCB deal could redefine IPL franchise valuations and further cement the IPL’s reputation as the fastest-growing and most valuable sporting property globally.
JM Financial recently initiated coverage on United Spirits as it valued its standalone business at 51 times September 27E EPS plus Rs 130 per share for RCSPL to arrive at a target price of INR 1,475 and 'add' rating. Sharp corrections should be used as an opportunity to add, said the brokerage.
“This is supported by 9 per cent, 11 per cent ad 12 per cent revenue, EBITDA and PAT CAGR and average RoEs and RoCEs (pre-tax) of 20 per cent/28 per cent expected across FY25-28E. While Maharashtra is likely to see disruption (tax hike, introduction of MML segment), IndiaUK FTA, faster growth in P&A segment and likely recovery in urban areas should support growth,” JM added.
Beside this, United Spirits continue to remain preferred pick of other brokerage firms as well. Antique Stock Broking and Nirmal Bang Institutional Equities both have a ‘buy’ rating on United Spirits with target price of Rs 1,747 and Rs 1,650 on the stock.
Due to GST transition issues; adverse impact on volumes/sales is likely to be 2–3 per cent, primarily due to delayed consumer purchases and trade reluctance to stock higher priced inventory, said Nuvama Institutional Equities in its recent report. However it has placed United Spirits among its preferred picks with a ‘buy’ rating and a target price of Rs 1,710.
Shares of United Spirits inched higher on Wednesday after the brewery's company shared its clarification over media reports regarding stake sale of its cricket franchise Royal Challengers Bengaluru (RCB). The company shares its clarification after the market hours on Tuesday, September 30.
In its response via an exchange filing, United Spirits said that it would not like to comment as it does not respond to market speculation. Shares of United Spirits jumped nearly 2 per cent to Rs 1,349.90 on Wednesday, commanding a marketcap close to Rs 98,000 crore. Shares of United Spirits have dropped nearly 21 per cent from its 52-week high at Rs 1,700, hit in March 2025.
According to some media reports, Global spirits major Diageo, the parent company of United Spirits and owner of Indian Premier League (IPL) franchise RCB had initiated the process to sell its stake in the team seeking a valuation close to $2 billion (Rs 17,500 crore). The brewer was reportedly evaluating the interest shown by Serum Institute’s owner Adar Poonawalla.
Global investment bank Citi has been appointed as transaction advisor. If the reported stake sale is said to be true, the RCB deal could redefine IPL franchise valuations and further cement the IPL’s reputation as the fastest-growing and most valuable sporting property globally.
JM Financial recently initiated coverage on United Spirits as it valued its standalone business at 51 times September 27E EPS plus Rs 130 per share for RCSPL to arrive at a target price of INR 1,475 and 'add' rating. Sharp corrections should be used as an opportunity to add, said the brokerage.
“This is supported by 9 per cent, 11 per cent ad 12 per cent revenue, EBITDA and PAT CAGR and average RoEs and RoCEs (pre-tax) of 20 per cent/28 per cent expected across FY25-28E. While Maharashtra is likely to see disruption (tax hike, introduction of MML segment), IndiaUK FTA, faster growth in P&A segment and likely recovery in urban areas should support growth,” JM added.
Beside this, United Spirits continue to remain preferred pick of other brokerage firms as well. Antique Stock Broking and Nirmal Bang Institutional Equities both have a ‘buy’ rating on United Spirits with target price of Rs 1,747 and Rs 1,650 on the stock.
Due to GST transition issues; adverse impact on volumes/sales is likely to be 2–3 per cent, primarily due to delayed consumer purchases and trade reluctance to stock higher priced inventory, said Nuvama Institutional Equities in its recent report. However it has placed United Spirits among its preferred picks with a ‘buy’ rating and a target price of Rs 1,710.