Bidding for the two new Indian Premier League (IPL) teams will begin in Dubai on Monday. While 22 companies, including Manchester United promoters, have purchased the bidding documents for Rs 10 lakhs, the Cricket Control Board in India (BCCI) expects serious bids from some five or six Indian corporate groups.
The base price for the new equipment has been set at Rs 2 billion. Some of the major industrial companies (Adani Group, RPSG backed by Sanjeev Goenka, Jindal Steel, owned by Naveen Jindal, Torrent Pharma, Aurobindo Pharma) have expressed interest.
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The BCCI hopes to secure a price of Rs 8,000-10,000 crore for each team.
โThe BCCI is inviting new teams after a while, and several companies have shown interest and have chosen the bidding documents. However, it is important to understand that purchasing bidding documents does not mean that all parties will be part of the final bidding process. With some prominent corporate groups in the fray, we expect an intense bidding, "said one of the BCCI sources. Sportstar.
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The BCCI has allowed a consortium, up to three companies or individuals, to bid on a franchise, but then each of the three entities should have an annual turnover of Rs 2,500 million. For an individual or a company, the annual turnover should be a minimum of Rs 3,000 crore.
According to the bidding documents issued by the BCCI, the teams must be based in any of the six Indian cities: Ahmedabad, Cuttack, Dharamsala, Guwahati, Indore and Lucknow. Although investors can bid on more than one city, they will have to settle for one.
Board sources have indicated that they will make a decision on whether to announce the winners on Monday, after making the technical evaluation of the offers.
The bids were initially due to open on October 17, however the deadline to purchase the bidding documents was extended until October 20, causing the delay. "There were broad interests from potential investors, forcing the BCCI to extend the term," said a BCCI source.
Industry experts, who have been following market trends for some time, believe that with 'broad and diversified' business models, the Adani Group and RPSG could emerge as pioneers. While Adani Group has invested in kabaddi equipment, RPSG owned the now defunct Rising Pune Supergiant franchise and Goenka is one of the owners of ATK-Mohun Bagan, which is listed on the ISL.
Owned by Naveen Jindal, Jindal Steel & Power is also a strong contender. Brother of Sajjan Jindal, co-owner of Delhi Capitals, Naveen is a sports enthusiast and even owns a polo team: Jindal Panther.
BCCI will add two new teams after six years. In 2015, it had added two teams, Rising Pune Supergiant and Gujarat Lions, for the 2016 and 2017 editions as replacements for the then-suspended Chennai Super Kings and Rajasthan Royals teams.
