United Breweries Ltd, owned by Indian billionaire Vijay Mallya, who last year bought into Formula One team Spyker and renamed it Force India, snapped up Bangalore for $111.6 million.
The base price for owning a team for 10 years was set at $50 million, with the inaugural IPL event to be held in April.
The league, expected to feature many of cricket's top players, is an effort to counter an unofficial Indian Twenty20 league which began late last year.
"I'm delighted that UB [United Breweries] group has got it," Mallya told reporters.
"United Spirits will now use this as an active promotional platform for all our brands," added Mallya, who lost the Mumbai bid to Mukesh Ambani-owned Reliance.
Eleven companies, some consortiums of individuals, were in the race to own teams from a choice of 12 cities where the franchises would be based.
Bollywood consortiums
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"To date we [the Indian Premier League] have made $1.749 billion."
Lalit Modi,
board vice-president |
Shah Rukh Khan, Bollywood actor, was part of the consortium that clinched Kolkata for $75.09 million, while infrastructure company GMR Holdings won the Delhi franchise for $84 million.
Mohali went for $76 million to a syndicate that included Bollywood actress Preity Zinta while media group Deccan Chronicle won Hyderabad for $107.01 million.
"To date we (the Indian Premier League) have made $1.749 billion," board vice-president Lalit Modi told a news conference.
"We are looking to build on it going forward."
The companies will pay 10 per cent of the bid price to the board every year, a board official said.
Last week organisers announced they had secured a 10-year rights contract worth more than $1 billion for the league.
Television rights were worth $918 million, with another $100 million for the league's promotion.
Cricket is big business
India Cements won the Chennai franchise for $91 million while Jaipur was snapped up for $67 million by UK-based company Emerging India.
The 44-day IPL starts on April 18 and will feature eight franchises with 16-man squads in its inaugural season.
Teams will play home and away games leading up to a grand final, with the first year featuring 59 matches played in late afternoon for prime-time television.
India, where cricketers are revered like pop stars, has the largest global cricket audience and multi-million-dollar sponsorship deals.
The IPL has the patronage of the International Cricket Council (ICC), the sport's governing body, and is intended to be part of a football-style Champions League, involving teams from several countries.