United Spirits is in focus today, but the trigger this time is not anything to do with its core liquor business. Instead, it is a cricket deal that is driving attention to the stock.

The company has approved the sale of Royal Challengers Bengaluru (RCB) franchise, for Rs 16,660 crore in an all-cash transaction. The buyer is a consortium led by the Aditya Birla Group, along with The Times of India Group, Bolt Ventures and Blackstone. This is a wholly owned subsidiary of United Spirits. 

The deal includes both the IPL and Women’s Premier League teams and marks United Spirits’ complete exit from the franchise. It also brings to a close the strategic review of the asset that the company had announced in November last year. The transaction will now move to the next stage, where it will require approvals from regulators such as the BCCI and the Competition Commission of India.

Not about alcohol, but about valuation

RCB has been one of the most visible and valuable assets within United Spirits, but it has always sat outside the company’s core business. With this sale, investors now have a clear, real-world valuation for that asset, something that was earlier debated and estimated.

The deal effectively converts what was a “hidden” or embedded value into a tangible number, and that is what is bringing the stock into focus.

Rajasthan Royals deal set the context

The timing of the announcement is important. Just a day before this, another IPL franchise, Rajasthan Royals, was sold at a valuation of around $1.6–1.65 billion (approximately Rs 15,200 crore). That transaction has already sparked a broader conversation in the market around how IPL teams are being valued.

In a note dated March 24, Nomura said the Rajasthan Royals deal could lift sentiment around United Spirits, as it sets a new benchmark for franchise valuations.

Why brokerages were looking at RCB closely

International brokerage house Nomura, in its report dated March 24, 2026  had argued that RCB could be valued higher than the Rajasthan Royals, given its stronger brand and commercial positioning. According to the brokerage firm, RCB has a larger and more engaged fan base, with an estimated 35–40 million followers across social platforms compared with 10–15 million for Rajasthan Royals. The report also mentioned that the franchise’s stronger monetisation potential through sponsorships, merchandise and extensions like the RCB Bar & Café.

On the field as well, RCB’s recent IPL 2025 title win and consistent performance add to its appeal. Its long-standing association with Virat Kohli has also helped build global visibility, the report added. 

Based on this, Nomura had suggested that RCB could be valued closer to $2 billion (approximately Rs 18,790 crore), significantly higher than earlier estimates of around $1–1.2 billion (approximately Rs 11,274 crore).

What the deal means for the stock

With United Spirits now announcing the sale of RCB at Rs 16,660 crore, the market has a clearer reference point for how such assets are being valued. For the company, the immediate implication is strategic. The management said the move will help it sharpen its focus on its core beverage alcohol business and continue driving long-term value.

For investors, however, the focus is on what this deal signals. Nomura, in its March 24 report, has retained a ‘Buy’ rating on the stock with a target price of Rs 1,650, which implies an upside of about 24% from the March 24 closing price of Rs 1,328. The brokerage had already been building in expectations of a higher valuation for RCB, and the recent transactions in the IPL ecosystem appear to support that view.

United Spirits’ share price has been rather flat as of Intraday on March 25. The stock has been down 6.83% in the past month. The stock has been down 3.7% in the past year.