Why is Diageo considering selling the Royal Challengers Bengaluru (RCB) team?

Diageo's potential sale of the RCB team has reopened discussions about the fate of long-divested businesses in India.

What is the connection between Diageo's RCB sale and India Cements' CSK?

Investors are comparing Diageo's potential sale of RCB to India Cements' demerger of Chennai Super Kings (CSK), which remains unlisted.

What does the sale of Royal Challengers Bengaluru mean for Indian businesses?

The potential sale raises questions about the future listing and market performance of businesses spun off long ago in India.

Home / Business and Economy / Diageo's RCB Sale: India Inc's Old Business Ghosts Reappear

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

4 Dec

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Summary

Diageo is considering selling its IPL cricket team, Royal Challengers Bengaluru.
The move brings to light unresolved issues regarding long-divested businesses.
Investors recall India Cements' Chennai Super Kings demerger and its unlisted status.

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.