IPL: GMR Sports owners of Delhi Daredevils to raise 550 crores
GMR Sports is currently being acquired by JSW Group.
Published - Jul 2, 2018 7:00 pm | Updated - Jul 2, 2018 7:00 pm
The Delhi Daredevils (DD) have been participating in the Indian Premier League (IPL) ever since the tournament’s inception in 2008. However, they have been inconsistent and even finished this year’s event as the cellar dweller. Recently, it has been learned that GMR Sports, the owner of the franchise, is planning to raise INR 550 crores through non-convertible debentures.
The step will be taken in order for the company to run their operations and for meeting any expenses and payment related obligations. The debentures will have a tenure of five years along with Call/Put option at the completion of 30 months with an advance notice of three months from either side. The first part of the repayment demands 45 per cent of the same to be done in 54 months.
GMR Sports to be renamed to JSW GMR Cricket
The second repayment has to be done by the end of 60th month from the date of allotment. GMR Sports is currently being acquired by JSW Group, that is acquiring 50 per cent stake in the company via its sports venture JSW Sports. Due to the issue of new shares, a total of 163 crores will be infused into GMR Sports out of which 100 crores will be used for redemption of preference shares.
At the end of March 2018, the net worth of GMR Sports was Rs -28.59 and the after the infusion of 63 crores (163-100), it will come to the positives. After the acquisition, Parth Jindal and Sangeeta Jindal, the JSW Group promoters will be hired by GSPL and the name of the company will be changed to JSW GMR Cricket as per reports in Insidesport.
Meanwhile, the IPL franchises are speculated to see a spike in earnings. The ratio of the central revenue pool between the Board of Control for Cricket in India (BCCI) and the IPL will be 50:45 over the next five years. The remaining five per cent will be distributed among the teams as per their rankings in the IPL league table.