Sun TV, RPSG shares surge up to 15% after United Spirits sale of RCB for over ₹16,000 crore

Shares of Sun TV Ltd., and RPGS Ventures Ltd. gained up to 15% on Wednesday, March 25, after United Spirits announced the sale of its wholly-owned subsidiary Royal Challengers Bengaluru (RCB) for over ₹16,600 crore.

While shares of Sun TV have opened with gains of over 4%, those of RPSG Ventures are trading 15% higher in early trading. Sun TV has cooled off from opening highs, and is trading with gains of only 1.5%.

The announcement was made just hours after Rajasthan Royals also announced that Kal Somani, Rob Walton (Walmart Family), and Hamp (Ford) family have bought the franchise for $1.6 billion.

For RCB, Aditya Birla Group, Brookfield, Times Internet, and Bolt Ventures have emerged as the winners for the bid.

The news puts Sun TV in focus as it owns the Sunrisers Hyderabad franchise. SRH forms nearly two-thirds (65%) of Sun TV's current market capitalization, which is close to ₹25,000 crore.

RPSG Ventures, which owns Lucknow Supergiants, will also be watched for as the valuation for LSG, in which it owns a 51% stake, is around 250% of its overall market capitalization, including a holding company discount.

Shares of Sun TV have not moved much over the last 12 months, having declined 8% during this period.

On the other hand, shares of RPSG Ventures, which surged nearly 10% on Tuesday, have also declined close to 30% over the last 12 months. Over the last one month, the stock has dropped 7%. The stock is up another 15% on Wednesday.

(With Inputs From Mangalam Maloo)