Sachin Tendulkar continues to play masterstrokes-this time in business! Going to buy 20% more stake in Kerala Blasters

Former India cricket captain Sachin Tendulkar, who already holds around 40% stake in Kerala Blasters, is going to buy around 20% more stake in the Kochi-based Indian Super League (ISL) franchise.

Therefore, Tendulkar will take control of the franchise by raising his stake. He will also get South-based financial services firm Muthoot Group as a new co-owner in a realignment of the shareholding pattern.

The cricket legend is going to buy more stake from his current co-owner Hyderabad-based PVP Ventures, emerging as a controlling stakeholder in the two year-old ISL team.

Kerala's financial services major Muthoot Pappachan Group, which is currently the title sponsor of the team, will also acquire close to 20% from PVP Ventures, owned by Hyderabad-based serial entrepreneur Prasad V Potluri.

Though we cannot comment about the financial terms of the transaction, people who are aware of the development said the deal value is close to Rs 75-Rs 85 crore, valuing the franchise at Rs 180 to Rs 200 crore.

PVP Ventures has been in talks to sell its stake in the team as the group intends to deploy the cash in other ventures and pay off some debt, according to multiple sources.

However, the company will retain a 20% stake in the firm and continue as a minority shareholder. "The deal is almost done. A formal announcement is expected soon," said one of the persons familiar with the matter.

The Blasters finished runners up in the inaugural edition of the ISL, losing to Atletico de Kolkata in the final. Tendulkar and former Indian cricket captain Sourav Ganguly own Kochi and Kolkata teams, respectively.

Muthoot Pappachan Group, better known for its gold loan business through its flagship Muthoot Fincorp, has interests in diversified areas from hospitality to automotive, from infrastructure to IT services, to healthcare and renewal energy.

Recently, it has launched several endeavours to promote sports through MPG Cricket Academy and also groomed football talents.

India's leading industrialists and sports celebrities as well as Bollywood stars have invested in the Indian Super League's eight franchises, expecting an IPL-model kind of gain in brand ownership, which may eventually translate into handsome returns on invested capital. "The first season was a great success and Blasters was one of the best teams in the inaugural league. Entry of Tendulkar as a controlling shareholder in the franchise may also boost the brand value significantly," said a consultant with a leading multinational firm.

(Image: Reuters)