5 days ago
- Business
- Business Standard
VIP Industries declines after promoters ink deal to sell nearly 32% stake for Rs 1,763 crore
VIP Industries slipped 2.26% to Rs 446.10 after the company announced that Dilip Piramal and Family (promoters) have entered into a definitive agreement with the Multiples Consortium to sell up to 32% stake in the company.
According to the companys exchange filing, a consortium led by Multiples Alternate Asset Management and Samvibhag Securities has signed an agreement to acquire nearly 4.55 crore shares or 31.89% stake in the company from the Piramal family. The deal includes CaratLanes founder Mithun Sacheti. The shares have been acquired by the buyers for a total consideration of Rs 1,763.31 crore.
According to the SEBI Takeover Regulations, this transaction by the promoter group has triggered an open offer.
The acquirers have proposed to acquire up to 3,70,56,229 shares, constituting 26% stake, of VIP Industries at a price of Rs 388 apiece. This translates to an aggregate total consideration of Rs 1,437.78 crore.
Upon completion of the transaction, control of the company will be transferred to Multiples Private Equity while Dilip Piramal and Family will continue to be shareholders in the company.
Dilip Piramal, chairman of the company, said: "We are pleased to welcome Multiples consortium as strategic partners in the company.
This marks an important step toward reviving the companys strong legacy and helping it regain its foothold in the Indian luggage market, where it has struggled in recent years."
VIP Industries is the leading manufacturer of hard and soft luggage in Asia.
The companys consolidated net loss widened to Rs 27.36 crore in Q4 FY25 as against a net loss of Rs 23.88 crore reported in Q4 FY24. Revenue from operations declined 4.28% year on year (YoY) to Rs 494.21 crore in the quarter ended 31 March 2025.
