Rajasthan Royals, an Indian premier league franchise, has sold an 11% stake to film actress Shilpa Shetty and her boyfriend Raj Kundra. The brand of Rajasthan Royals has been valued at $140 million. Kundra is a London-based entrepreneur.
The team has three investors which include Manoj Badale, and Rupert Murdoch's estranged son Lachlan Murdoch. At the time of bidding, Rajasthan Royals was bought for the lowest value among all teams at only $67 million. Badale is the co-founder and managing partner of an investment firm Blenheim Chalcot.
There have been some stake sales in IPL franchises. Top Deutsche Bank executive Anshu Jain bought a 15% stake in Mukesh Ambani's Indian Premier League franchise Mumbai Indians last year. Meanwhile, Deccan Chronicle Holdings Ltd has given the mandate to KPMG Corporate Finance to advise on the sale of its IPL franchise, Hyderabad's Deccan Chargers.
With some of the franchises like Chennai Super Kings, Kolkata Knight Riders and Rajasthan Royals managing to break even or even spinning a small profit, the IPL franchise is turning out to be a lucrative business opportunity.
IPL is already a star-studded affair with filmstars like Shah Rukh Khan, Preity Zinta and Juhi Chawla being team owners. While Khan and Chawla own Kolkata Knight Riders, Zinta and her boyfriend Ness Wadia own Kings XI Punjab.