The share price of VIP Industries down 2.6% today, July 14 after a major shift in promoter holding was announced. The Piramal family, which has been one the India’s leading luggage brands for decades, is set to exit a portion of its stake. The move also activates a mandatory open offer under SEBI’s takeover rules.
Let’s take a look at the six key factor investors need to know-
VIP Industries stake sale: Piramal family to sell 32% stake for Rs 1,763 crore
In an agreement signed over the weekend, Dilip Piramal and family said that they will sell a 32% stake in VIP Industries to a consortium led by Multiples Private Equity Fund IV, along with other acquirers such as Samvibhag Securities and the Sancheti family.
The transaction is pegged at Rs 1,763 crore, valuing the shares at Rs 388 per share, a 15% discount to VIP’s last closing price on Friday.
VIP Industries stake sale: Deal triggers open offer for an additional 26%
As per SEBI’s Substantial Acquisition of Shares and Takeovers (SAST) Regulations, this transaction crosses the mark requiring an open offer. Following the 32% acquisition, the buyer consortium will launch an offer to acquire another 26% from public shareholders, pushing the potential total acquisition to 58% of the company.
The company in an exchange filing today said, “The Acquirers and the PACs hereby make this Open Offer to the Public Shareholders to acquire up to 3,70,56,229 Equity Shares…constituting 26.00% of the Expanded Share Capital, at a price of Rs 388.00 per Offer Share.”
VIP Industries stake sale: Total value of the deal is Rs 3,200 crore
If the open offer sees full acceptance, the total cost of acquiring a 58% stake will come to Rs 3,200 crore. The open offer alone is valued at Rs 1,437 crore, while the initial 32% purchase is worth Rs 1,763 crore.
The open offer will be entirely in cash, as per the filing, “Assuming full acceptance… total consideration payable by the Acquirers and the PACs will be Rs 1,437,78,16,852.”
VIP Industries stake sale: Who is selling and who is buying?
The sellers include –
Entities tied to the Piramal family, including DGP Securities, Kemp and Company, Alcon Finance, and Dilip Piramal himself, are part of the seller group.
The buyers/acquirers and PACs are –
- Multiples Private Equity Fund IV
- Multiples Private Equity Gift Fund IV
- Samvibhag Securities
- Mithun Sacheti and Siddhartha Sacheti
- Profitex Shares and Securities
These acquirers are acting in concert and will collectively hold controlling interest if the open offer succeeds.
VIP Industries share performance
The share price of the VIP Industries has surged 8% in the last five trading sessions and gained 7% over the past month. Over a six-month period, the stock has risen nearly 6%. However, on an yearly basis, it has declined by 4%. So far in 2025, the stock is down by 5%. The company’s 52-week high stands at Rs 589.75, while the 52-week low is Rs 248.35.