VIP Industries promoters sell 32% stake to multiples

New Delhi: Dilip Piramal and Family, promoters of VIP Industries, have entered into a definitive agreement to sell up to 32% of their stake in the company to the Multiples consortium. The transaction will lead to a change in control of the company, with Multiples Private Equity taking the lead, while the promoter family will retain partial shareholding.

According to the report, in compliance with SEBI Takeover Regulations, the deal will trigger an open offer for the acquisition of an additional 26% stake from public shareholders. VIP Industries has informed the exchanges that the open offer will be made at Rs 388 per share, amounting to a total consideration of Rs 1,437.78 crore, assuming full acceptance. This represents a nearly 15% discount to VIP’s closing price of Rs 456.40 on the BSE as of Friday.

"The Open Offer is made at a price of Rs 388 per offer share, which has been determined in accordance with Regulations 8(2) of the SEBI (SAST) Regulations," the company stated in its filing.

The Multiples consortium includes Multiples Private Equity Fund IV, Multiples Private Equity Gift Fund IV, Samvibhag Securities, Mithun Padam Sacheti, Siddhartha Sacheti, and Profitex Shares and Securities.

Following the transaction, Dilip Piramal will be designated Chairman Emeritus of VIP Industries. “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,” a joint statement said.

Commenting 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.”

Renuka Ramnath, Founder, MD and CEO of Multiples Alternate Asset Management, added: “Multiples is excited to lead the ownership transition of the very strong legacy business of VIP and further build on its rich heritage and unlock its next phase of growth.”

The transaction, including the open offer, remains subject to approval from the Competition Commission of India and will proceed in accordance with SEBI regulations.