The scramble to secure a majority ownership position in the Rajasthan Royals has taken a sudden turn in the span of just a day, with the Kal Somani-led consortium pulling out of the bidding process. That exit has reopened the door for a fresh offer from the Lakshmi N. Mittal group, backed by his son Aditya Mittal and Adar Poonawalla, after an earlier plan involving the Somani group ran into obstacles and ultimately collapsed.
Bid timeline and why the Somani deal collapsed
- Over the past 24 hours, the consortium led by Kal Somani withdrew from the attempt to buy a controlling stake in Rajasthan Royals.
- The earlier transaction proposed by the Somani group encountered multiple hurdles and did not reach completion.
- A major point of disagreement surfaced around the intended ownership structure after the sale.
- Rajasthan Royals’ lead promoter Manoj Badale was said to want to keep his current 7% stake in the franchise even after the sale.
- The Kal Somani-led consortium reportedly opposed that arrangement, preferring a majority takeover where Badale would not remain a shareholder.
- This difference in approach became the central sticking point that derailed negotiations.
- Beyond the shareholding dispute, the Somani bid is also understood to have run into complications during due diligence, with multiple issues flagged during the scrutiny process.
With the Somani group stepping away, the Mittal-Poonawalla combine has moved forward. The new consortium—led by Lakshmi Mittal with support from Aditya Mittal and Adar Poonawalla—has submitted what is described as a higher offer worth USD 1.65 billion, which works out to roughly Rs 15,600 crore.
The valuation covers not only the Rajasthan Royals men’s franchise, but also its associated sides, Paarl Royals and Barbados Royals, as part of the overall consideration.
What happens next and expected closing date
The transaction is not final yet and remains dependent on multiple regulatory and governing clearances. Approval is required from the Board of Control for Cricket in India (BCCI), the Competition Commission of India, the IPL Governing Council, and other relevant authorities.
If the necessary approvals are secured within the expected time frame, the deal is anticipated to be completed in the third quarter of 2026.
The failed Somani bid underlines how IPL franchise sales have evolved beyond simple price tags—ownership rights, governance structure, regulatory approvals, and long-term control are now central elements in whether a deal can be concluded.
