Latest news with #MultiplesPrivateEquity
India.com
6 days ago
- Business
- India.com
Who is Deepak Piramal? Mukesh Ambani's relative forced to sell famous business of…, no one ready to handle Rs 6,800 crore company because…
VIP owner Dilip Piramal had left his family business to build India's largest luggage brand, VIP Industries. It is now valued at Rs 6,800 crore. Mukesh Ambani's relative Dilip Piramal is now going to sell a stake in VIP. Who is Dilip Piramal? What do his children do? VIP Industries Journey For decades, VIPs have been named in the Indian household as luggage in India. Despite the arrival of numerous brands, VIP retained its identity during the 1980s and 90s. During this time its suitcases and trolleys dominated the market. Operating under the tagline 'Yesterday, Today, and Tomorrow,' VIP Industries is now going to go through a major change. A 32% stake in the company is up for sale. Why Is VIP Being Sold? Dilip Piramal, the owner of VIP Industries, is set to sell his 32% stake, valued at around Rs 1,763 crore. This is the company he founded after separating from the Piramal family business. At 75, Piramal says his family has no interest in running the company, and at this age he is unable to give full time attention to the business as per its demand. No Heir To Carry Legacy Dilip Piramal's next generation has no desire to take charge of VIP Industries. Over the past five years, the company's market share and sales have declined, partly due to this lack of active leadership. Rather than watch the company struggle, Piramal wants it to be taken over by someone who can ensure its continuity. After the sale, he will retain just 17% ownership in VIP. Who Are Dilip Piramal's Family Members? Piramal's personal life has also been in the spotlight. He has been married twice and has three daughters, but none are interested in managing the business. His first wife, Gita Piramal, is a well-known author. They married in 1975 and have two daughters named Radhika and Aparna. Dilip and Gita divorced in 2005. Radhika identifies herself as lesbian, and lives in London with her wife. She has been associated with VIP Industries since 2010 as a Managing Editor. Aparna reportedly suffers from bipolar disorder. His second wife, Shalini Agarwal, and Dilip have a daughter named Priyadarshini. Despite their success and privilege, none of the daughters have shown interest in continuing the family business and that is the main reason behind Dilip Piramal's decision to sell it Who Is Buying VIP? According to media reports, the interested buyers include Multiples Private Equity, Aakash Bhansali, a well-known stock investor and Mithun Sacheti, founder of CaratLane Dilip Piramal Connection With Mukesh Ambani Dilip Piramal is the elder brother of Ajay Piramal, chairman of Piramal Enterprises. Ajay's son Anand Piramal is married to Isha Ambani, the only daughter of Mukesh Ambani making Dilip Piramal Mukesh Ambani's samdhi (in-law). Dilip Piramal was established VIP Industries Ltd in 1968, focusing on the manufacturing and sales of luggage, backpacks, and handbags. Today, VIP products are available in over 45 countries and across 8,000 retail stores in India. The company has a market capitalization of Rs 6,800 crore, and Dilip Piramal's personal net worth is more than Rs 4,000 crore.
Entrepreneur
7 days ago
- Business
- Entrepreneur
VIP Industries Promoters to Sell 58% Stake to Multiples PE for INR 3,200 Cr
The new acquirers will have the right to nominate a majority of the board of directors. In addition, DGP will retain the right to recommend one independent director or nominate a family member as a non-independent non-executive director. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Promoter group entities of VIP Industries have agreed to sell up to 58 percent stake in the luggage company to a consortium led by Multiples Private Equity for a total consideration of INR 3,200 crore, according to a stock exchange filing. The transaction involves the sale of around 4.54 crore shares, or 32 percent of the company's total equity, by Kemp & Company, DGP Securities, Piramal Vibhuti Investments, Alcon Finance and Kiddy Plast. These entities are part of the promoter group and will transfer their holdings to Multiples PE funds along with Samvibhag Securities, Mithun Padam Sancheti and Siddhartha Sancheti for INR 1,763.3 crore. Following this, the consortium will launch an open offer to acquire an additional 26 percent stake in VIP Industries. The offer is valued at INR 1,437.8 crore. Once the open offer is completed, the consortium will assume management and control of the company. The shares are being sold at INR 388 apiece, which represents a discount of approximately 15 percent to the closing price of VIP Industries on the previous trading day. As of March, DGP Securities held around 27 percent stake in the company, while Vibhuti Investments owned 15.7 percent. Kemp & Company, Kiddy Plast and Alcon Finance collectively held a little over 6 percent. Promoter Dilip Piramal directly holds a 0.5 percent stake. A company release stated, "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. Dilip Piramal will be Chairman Emeritus." The new acquirers will have the right to nominate a majority of the board of directors. In addition, DGP will retain the right to recommend one independent director or nominate a family member as a non-independent non-executive director. Speaking on the development, Dilip Piramal said, "This marks an important step toward reviving the company's strong legacy and helping it regain its foothold in the Indian luggage market, where it has struggled in recent years."
