As Royal Challengers Bengaluru (RCB) and Rajasthan Royals (RR) gear up for their respective deals, now a part stake sale is also in the works at peer Kolkata Knight Riders (KKR), three-time winners of the Indian Premier League (IPL), multiple industry sources in the know told Moneycontrol.
The KKR franchise is owned by Knight Riders Sports Private Ltd, which was set up in 2008 as a joint venture between Bollywood superstar Shah Rukh Khan's Red Chillies Entertainment and actress Juhi Chawla and industrialist Jay Mehta-backed Mehta Group.
According to reports, Red Chillies Entertainment owns a majority stake of 55 per cent in the joint venture, Mehta Group owns the balance 45 per cent stake, and the trio of Khan, Chawla and Mehta (Chawla's husband) paid around $75 mn for the team in the inaugural IPL auction.
"Unlike RCB and RR, which are exploring a proposed majority stake sale, when it comes to KKR, only the Mehta group plans to offload a minority stake and unlock value," one of the persons told Moneycontrol, adding that the deal is at a preliminary stage.
A second person added, "Investment bank Nomura has been mandated as the sell-side advisor for the proposed transaction and the deal is likely to be launched in early 2026, by January end or early February."
Two other persons confirmed the same, and one of them said the deal contours may change depending on the incoming demand from suitors and investors for the proposed monetisation exercise.
The exact quantum of minority stake up for grabs and the targeted valuation for KKR could not be independently ascertained by Moneycontrol.
KKR, the only franchise, other than Mumbai Indians and Chennai Super Kings, to win the IPL title on multiple occasions, emerged triumphant in 2012, 2014 and 2024. 2025 winner RCB and 2008 winner Rajasthan Royals, which are both evaluating a change in control, are eyeing a valuation of $2 bn and $1 bn plus respectively, according to previous media reports.
All four persons above spoke to Moneycontrol on the condition of anonymity.
When contacted via email, a representative for KKR said, " At the moment, KKR won't be able to comment on this, given the nature of the information."
Multiple emails and text messages to Red Chillies Entertainment, Jay Mehta, Juhi Chawla and the Mehta Group remained unanswered at the time of publishing this article. Reminders have been sent and this article will be updated when we hear from the parties. When contacted, Nomura declined to comment.
According to the group's official website, Jay Mehta-led Mehta Group has a presence in India, Africa and the USA and its business interests cover a wide range of sectors, including cement and building materials (listed firm Saurashtra Cement Ltd), packaging, sugar, horticulture & floriculture, engineering, electrical cables, consultancy, agro chemicals, hospitality, trade and financial services.
As per the Hurun Rich List 2025, with a net worth of Rs 7,790 crores, former Miss India Juhi Chawla is the country's richest actress, with investments in sports (KKR), prime real estate and restaurants, according to reports.
A walk down the KKR pitch
Other than the three IPL trophies in its kitty, KKR also has a runner-up trophy each from the 2014 Champions League T20 and IPL 2021. The team's primary home ground is the iconic Eden Gardens in Kolkata.
In the recent 2026 IPL auction, KKR bought Cameron Green for Rs 25.20 crore, making the Australian all-rounder the third-most expensive player sold at an IPL auction and the most expensive overseas player ever. KKR also shelled out Rs 18 crore for Sri Lankan fast bowler Matheesha Pathirana, the second-most expensive player at this year's auction, according to espncricinfo.com
According to its LinkedIn page, over and above KKR, Knight Riders Sports Private Ltd has also spread its presence around the globe by acquiring Trinbago Knight Riders - five-time champion and the most successful team in the CPL, Abu Dhabi Knight Riders in UAE's ILT20, and Los Angeles Knight Riders in Major League Cricket in the USA.
More M&A in IPL
On December 8, Moneycontrol reported that British-Indian entrepreneur Manoj Badale promoted Rajasthan Royals, the winner of the inaugural edition of the Indian Premier League ( IPL) in 2008, had kick-started the process for a proposed big-bang deal aimed at offering a controlling stake in the franchise, targeting a valuation of $1bn plus. The franchise won the inaugural edition of the IPL.
Badale's Emerging Media Ventures holds around 65 per cent majority stake in the franchise as per reports, with minority investors including American investment management firm RedBird Capital Partners ( around 15 per cent stake) and Fox Corporation's Lachlan Murdoch, among others.
In early November, United Spirits Ltd (USL), the Indian arm of global beverage major Diageo, announced that it had initiated a strategic review of its investment in Royal Challengers Sports Pvt. Ltd (RCSPL), the company that owns the Royal Challengers Bengaluru (RCB) cricket franchise.
The firm said the review process is expected to be completed by March 31, 2026, and the IPL team is non-core to its alco-bev business.
Earlier in September, CNBCTV-18 first reported that Diageo was seeking a $2 bn valuation for RCB with Adar Poonawalla of Serum Institute emerging as a front-runner, among other suitors.
Why is the IPL a lucrative opportunity?
As per the "IPL Valuation Study 2025" by Houlihan Lokey, the IPL business value has risen to $18.5 bn from $15.4 bn in 2023. On the other hand, the IPL brand value rose to $3.9 bn from $3.2 bn in 2023.
As per the study, KKR had a brand value of $227 mn, maintaining the fourth position on the brand value chart behind RCB ( $269 mn), Mumbai Indians ($242 mn) and Chennai Super Kings ($235 mn)
The study also highlighted the difference between the IPL and global sports leagues like the NBA and EPL when it came to aspects like transfer fees and operating costs.
"From a dealmaker’s lens, IPL represents a near-perfect blend of predictable cash flows and cost discipline, a rarity in the global sports asset universe. Revenues are underwritten by BCCI’s long-term, well-negotiated media rights contracts and front-loaded sponsorship deals, creating annuity-like cash flows.
The top franchisees clock ~Rs 6,500 million to ~Rs 7,000 million in annual revenues, with up to 80 percent visibility secured before the start of the tournament. On the cost side, the presence of a salary cap (Rs 1,200 million per team) functions as an embedded margin protector, preventing wage inflation (a major concern for global sports teams) and ensuring competitive parity among teams.
Moreover, franchisees operate with minimal fixed-asset exposure, benefitting from ready access to stadium infrastructure already created by BCCI, translating into a capital-light model with structurally high return on employed capital," the report said.
The study added, "When benchmarked against global peers like EPL and NBA teams that wrestle with high player transfer fees, variable wages, and high stadium operating costs (including servicing stadium debt), IPL franchisees operate with an asset-light, revenue-guaranteed model, a structure that not only cushions downside risk but also amplifies operating leverage on the upside.
For institutional investors, this makes the IPL not just a sports league but a high-growth compounder in the entertainment space, catering to a fast-growing fan base with rising disposable income and a strong appetite for premium digital experiences."
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