Shares of United Spirits Limited (NSEI:UNITDSPR) climbed over 3% on June 10 to touch a five-month high, following a media report that suggested its parent company Diageo plc (LSE:DGE) was considering selling its stake in IPL franchise Royal Challengers Bengaluru (Royal Challengers Sports Pvt. Ltd.) (RCB). However, United Spirits swiftly issued a clarification, categorically denying any such development.
In a regulatory filing with the BSE, United Spirits said the media reports were speculative in nature and there were no ongoing discussions regarding the stake sale. "This has reference to your email communication dated 10th June 2025 seeking clarification from the Company on media reports in relation to potential stake sale of RCB. The Company would like to clarify that aforesaid media reports are speculative in nature and it is not pursuing any such discussions," United Spirits stated.
The clarification came after a report indicated that Diageo was in talks with advisors to explore a potential sale of part or all of the RCB franchise, seeking a valuation of up to INR 17,0000 million. The report also mentioned that no final decision had been made and Diageo might ultimately decide not to proceed with the sale. RCB, one of the most popular franchises in the IPL, was originally acquired by Vijay Mallya.
After Kingfisher Airlines shut operations in 2012, Diageo took control of the team following its acquisition of Mallya's spirits business. In a historic moment this season, RCB clinched their first-ever IPL title, defeating Punjab Kings in a closely contested final by six runs.
