Diageo's RCB Sale: India Inc's Old Business Ghosts Reappear

The prospect of Diageo divesting its Indian Premier League franchise, Royal Challengers Bengaluru, has inadvertently brought to the forefront a complex and often overlooked aspect of Indian corporate history: the enduring legacy of businesses that were spun off years ago.

This potential transaction has drawn significant attention from investors, who are now scrutinizing the market's handling of similar past ventures. A prominent example cited is the demerger of India Cements' Chennai Super Kings unit. Despite being separated five years prior to the current date, CSK continues to trade solely within the unlisted market, raising persistent questions about its future public listing.

Consequently, the move by Diageo is not just about a cricket team's ownership but also about the broader implications for corporate strategy and investor confidence in how divested assets are managed and eventually integrated or listed.