The current market capitalisation of Deccan Chronicle is Rs 700 crore. The valuation of the team is seen at over Rs 2,250 crore. The company is likely to use funds to pay back debt & capex.
Shares in the company traded 7 per cent higher at Rs 32.45 on the BSE at 1 p.m., while the broader Sensex gained 1.15 per cent at 16,869.
Deccan Chronicle group had acquired the franchise for $107 million in 2008. The Deccan Chargers' had won the second season of the IPL held in South Africa in 2009.
There was no official word on the potential sale of the IPL team, but sources said that Religare Capital Markets has been given the mandate to find the buyers and conclude the deal, PTI said.
P K Iyer, executive vice chairman of Deccan Chronicle Holdings declined to comment. "(We have) no comments on market speculation," Iyer said over phone to PTI. Officials at Religare Capital Markets were not available for comment.