MUMBAI: Deccan Chronicle Holdings Ltd. has mandated KPMG Corporate Finance to find a buyer for Deccan Chargers, the Indian Premier League (IPL) franchise for Hyderabad team.
The company is looking at a valuation of $250 million and is prepared to exit. "We are willing to dilute our stake completely if we get the right valuation. We hope to seal the deal within 15-20 days," a source in the company said.
Deccan Chronicle Holdings managing director PK Iyer declined to comment.
The Hyderabad team franchise went to Deccan Chronicle for $107.01 million over 10 years. For acquiring the team players including Adam Gilchrist and Andrew Symonds, Deccan spent a further $5.88 million in the first edition of the IPL.
"Deccan Chargers, which finished almost at the bottom of the table in the inaugural edition of the IPL, lost $4-5 million in the first year," a source in the industry who is tracking the IPL said.
NRI industrialist Vikas Rambal, who is sponsoring Champions League Twenty20 side Waca Warriors, is understood to be one of the suitors for owning Deccan Chargers. Perth-based Rambal, who signed a three-year sponsorship deal with WACA Twenty20 team Waca Warriors, is sending the team to India in December for the Champions League T20.
"Several other parties have also shown interest," the source said.
Industry analysts, however, said the enterprise valuation of $250 million seems to be on the higher side. "A more realistic figure would be $200 million," a source who was involved with one of the team franchises said.
It is still not clear whether franchisees can dilute majority stake before three years. IPL chairman and commissioner Lalit Modi was recently quoted by a newspaper as having said that franchisees "can bring in a minority owner or owners, the IPL governing council have no issues with that."
Deccan Chronicle owns 100 per cent of Deccan Chargers.
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