VIP Industries Shares Trembled over 5% As Piramal Family Moves Ahead To Offer 32% Stake

Shares of VIP Industries, one of leading luggage manufacturer in country, saw a decline over 5 per cent as it plunged to Rs. 430  on Monday, July 14. The sharp drop came after the announcement of major changes in its holdings.

Dilip Piramal and his family have decided to offload a 32% stake to a new investor group. The consortium is headed by Multiples Private Equity Fund IV and includes other players such as Samvibhag Securities and the Sancheti family.

The transaction values the 32% stake at Rs 1,763 crore, with shares being sold at Rs 388 each , around 15% lower than VIP’s last traded price on Friday.

Following this deal, the acquirers will also make a mandatory open offer to the public to buy up to an additional 26% of the company, or 3.7 crore shares. This phase of the acquisition is estimated to cost Rs 1,437 crore.

In total, the investors are looking at a Rs 3,200 crore commitment for a controlling 58% stake in VIP Industries.

“Multiples Private Equity Fund IV and Multiples Private Equity Gift Fund IV ,together with Samvibhag Securities Private Limited, Mithun Padam Sacheti, Siddhartha Sacheti and Profitex Shares and Securities Private Limited, in their capacity as persons acting in concert with the Acquirers have announced an open offer for acquisition of up to 3,70,56,229 Cr fully paid-up equity shares of face value of Rs. 2, each from the Public Shareholders of the Target Company, representing 26% of the Expanded Share Capital at a price of Rs 388, aggregating to total consideration of up to Rs. 1,437,78,16,852 Cr payable in cash” company said in an exchange filing on July 14.

VIP Industries Share Price

The shares opened at Rs. 441, then touched high and low of Rs. 450 and Rs 430 respectively. As of 10:52 AM, the share was trading at Rs 446. 

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