VIP Industries is making headlines—and not for the right reasons. On Monday morning, the company’s shares fell over 4% on the NSE after a major announcement hit the street.
The promoters of VIP Industries, led by Dilip Piramal and family, have agreed to sell a 32% stake in the company. This sale has triggered a mandatory open offer for an additional 26%, as per SEBI rules. Combined, this puts 58% of the company up for grabs.
The buyers? A big-money group led by Multiples Private Equity Fund IV, its Gift Fund, Samvibhag Securities, and Mithun and Siddhartha Sancheti. Together, they’ll spend a massive ₹3,200 crore for the deal.
Here’s how the numbers break down:
- ₹1,763 crore will go toward buying the 32% stake
- ₹1,437 crore will fund the 26% open offer
- Price per share: ₹388, which is 15% lower than Friday’s closing
The announcement came on Sunday evening. By Monday at 9:18 a.m., VIP Industries stock was trading at ₹437.6, a 4.1% dip from the previous session.
The sellers include a long list of Piramal group firms—DGP Securities, Alcon Finance, Kemp and Company, among others. Clearly, the family is making a full exit.
Dilip Piramal, the company’s chairman, said,
“We are pleased to welcome Multiples as strategic partners. This is a big step toward reviving VIP’s legacy and reclaiming our space in the Indian luggage market.”
Let’s be real—VIP Industries has struggled lately. In the past year, the stock is down 4.4%, while Nifty 50 is up by 2.2%. That’s not a small gap.
So what does this deal mean?
On paper, it’s a bold move. VIP Industries gets a fresh set of hands, and the Piramals walk away with billions. But the stock market isn’t convinced—at least not yet.
It’s also a clear sign that private equity is stepping deeper into India’s consumer brands. Luggage may not be sexy, but it’s a business ripe for disruption—and Multiples clearly sees an opportunity.
Still, a 15% discount on the deal price sends a message. This isn’t a hype play. It’s a hard reset.
Whether VIP Industries bounces back under new leadership or continues to fade will be a story worth watching.
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