RPSG Ventures rose 3.48% to Rs 875.15 after the company won a successful bid for a new Indian Premier League (IPL) franchise of Lucknow.
On 31 August 2021, the Board of Control for Cricket in India (BCCI) issued an Invitation to Tender ("ITT") for the right to own and operate one of the two new franchises to be introduced to take part in IPL from and including the 2022 season.Pursuant to the tender process, RPSG Ventures won the bid for the Lucknow IPL team at Rs 7,090 crore. The company, through a newly incorporated firm, will own and operate the Lucknow franchise of the IPL at Bharat Ratna Shri Atal Bihari Vajpayee Ekana Cricket Stadium in Lucknow, Uttar Pradesh.
The gross payment for the new franchise is Rs 709 crore per year, payable for a period of 10 years. The new franchise shall be entitled to receive share of the central rights income as per relevant rules of BCCI.
The new franchises will participate in IPL from 2022 season onwards, subject to the bidders completing the post-bid formalities. The IPL 2022 season will comprise ten teams and will have 74 matches, wherein each team will play 7 home and 7 away matches.
On a consolidated basis, RPSG Ventures reported net profit of Rs 25.26 crore in Q1 June 2021 as against net loss of Rs 3.66 crore in Q1 June 2020. Net sales rose 41.60% to Rs 1610.97 crore in Q1 June 2021 over Q1 June 2020.
RPSG Ventures was incorporated on 7 February 2017 as a wholly owned subsidiary of CESC, a flagship company of the RP-Sanjiv Goenka Group. The company was incorporated with the objective of engaging in the fields of information technology, business process outsourcing and such other ventures.
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