There's action off the track even before the first ever Formula One race to be held in India kicks off – the UB Group's Mr Vijay Mallya has sold 42.5 per cent stake in his Force India F1 team to Sahara Group, headed by Mr Subroto Roy.

The two industrialists made a joint announcement in the Capital on Wednesday after trading hours. The Sahara Group chief, Mr Subroto Roy, said that he had invested $100 million in the team and it would henceforth be known as Sahara Force India F1 team.

Earlier in the day, the stock of UB Holdings owned by Mr Mallya, who is currently facing air pockets in his aviation venture Kingfisher, rose 9.15 per cent on Wednesday on rumours of the sale. UB Holdings share rose to Rs 107.95 on the Bombay Stock Exchange.

Equity infusion

Mr Mallya clarified that he had not sold a single share and that the deal was through fresh equity infusion. Post the deal, Sahara Parivar and Mr Mallya will each own 42.5 per cent stake with the remaining 15 per cent belonging to Dutch entrepreneur Michiel Mol's family.

Mr Mallya had along with Mr Mol bought the loss making Spyker Ferrari F1 Team in 2007 and subsequently renamed it as Force India.

Both Mr Mallya and Mr Subroto Roy have large interests in sports. While Mr Mallya also owns the IPL team Royal Challengers, the Sahara group supports the Indian hockey team, and had bid $370 million to become owners of the Pune franchise in cricket's Indian Premier League in October, 2010.

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