United Spirits has officially announced board approval for the sale of its entire stake in Royal Challengers Sports Private Limited to a consortium for ₹166.6 billion through a definitive share purchase agreement executed on March 24, 2026.

Board Approval and Transaction Details

The board of directors of United Spirits Limited approved the sale of 14,690 equity shares of Royal Challengers Sports Private Limited at its meeting held on March 24, 2026. The board meeting commenced at 18:09 hours IST and concluded at 19:00 hours IST, with the execution of the Share Purchase Agreement and related transaction documents receiving formal approval.

Buyer Consortium Details

The acquisition is being undertaken by a consortium comprising five entities with complementary strengths across sports, media, technology, and brand-building. The buyers do not belong to any promoter/promoter group/group companies of United Spirits Limited.

Financial Performance Metrics

Royal Challengers Sports Private Limited contributed ₹504 crores in revenue from operations during financial year 2024-25, representing 1.9% of USL's standalone revenue. The subsidiary's net worth as of March 31, 2025 stood at ₹321 crores, accounting for 4.1% of USL's net worth.

Analyst Ratings and Valuations

Following the landmark transaction, leading investment banks have issued varying views on United Spirits' prospects. CLSA maintains a Hold rating with a target price of ₹1,300, noting that the ₹166.6 billion sale values Royal Challengers Bengaluru at approximately $1.2 billion, equivalent to around ₹213 per share, which may limit upside potential post-monetization.

JPMorgan has assigned an Overweight rating with a target price of ₹1,565, emphasizing that the divestment sharpens focus on the core liquor business and unlocks approximately ₹195-200 per share value. Nuvama maintains a Buy rating with the highest target price of ₹1,660, highlighting that the Royal Challengers Bengaluru stake sale removes overhang, unlocks capital from low-contribution asset, enables potential one-time dividend and improves capital allocation, return ratios and strategic clarity.

Strategic Implications and Regulatory Approvals

Commenting on the transaction, Praveen Someshwar, MD & CEO of USL, stated: "This transaction marks an important milestone for USL as we sharpen focus on our core beverage alcohol business to unlock its true potential with sustained growth, and to continue delivering on long-term value creation for our stakeholders."

The transaction remains subject to customary closing conditions and regulatory approvals, including clearances from the Competition Commission of India and the Board of Control for Cricket in India. Upon completion, Royal Challengers Sports Private Limited will cease to be a subsidiary of United Spirits Limited. The proposed transaction does not fall within related party transactions and is being conducted at arm's length.

United Spirits Limited has successfully completed its postal ballot process for the appointment of Ms. Julie Bramham as a Non-Executive Non-Independent Director. The company announced the results on 12th March 2026, following the conclusion of the remote e-voting period on 11th March 2026 at 5.00 p.m. IST, as communicated to BSE Limited and National Stock Exchange of India Limited under Regulation 44.

Overwhelming Shareholder Support

The postal ballot received strong endorsement from shareholders, with 99.72% voting in favor of Ms. Julie Bramham's appointment. The voting process saw participation from 1,677 shareholders out of 3,09,434 total members as on the cut-off date, demonstrating significant engagement in the corporate governance process.

Regulatory Compliance and Process

The postal ballot was conducted in accordance with Section 108 and 110 of the Companies Act, 2013, and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Mr. Sudhir V. Hulyalkar, Company Secretary in Practice, served as the appointed Scrutinizer for the process and submitted his report on 12th March 2026.

The voting process commenced on 10th February 2026 at 9.00 A.M. IST and concluded on 11th March 2026 at 5.00 P.M. IST. Shareholders whose names appeared in the Register of members as on 30th January 2026 (cut-off date) were entitled to participate in the remote e-voting process through NSDL's electronic platform.

Category-wise Voting Results

The voting results showed strong support across all shareholder categories:

Director Appointment Details

Ms. Julie Bramham (DIN: 08415737) was initially appointed as an Additional Director by the Board of Directors on 21st January 2026, based on the recommendation of the Nomination and Remuneration Committee. Her appointment as a regular Director (Non-Executive Non-Independent) will be subject to retirement by rotation as per company regulations.

Documentation and Compliance

The company has uploaded the voting results and Scrutinizer's report on its website www.diageoindia.com and on the National Securities Depository Limited's e-voting platform. The resolution is deemed to have been passed on 11th March 2026, being the last date specified for the remote e-voting process.

Company Secretary and Compliance Officer Pragya Kaul signed the official communication to stock exchanges, confirming the successful completion of the postal ballot process and regulatory compliance under Regulation 44(3) of SEBI Listing Regulations.