VIP Industries shares fall over 5% as Piramal family sells stake to Multiples PE firm

Shares of VIP Industries fell as much as 5.34% to hit an intraday low of ₹432.15 after its promoter group led by Piramal family signed an agreement with Multiples Private Equity firm to sell 32% in luggage major VIP Industries.

The stake sale, representing around 32% of VIP Industries' total paid-up capital, will trigger an open offer to public shareholders as mandated under SEBI’s Substantial Acquisition of Shares and Takeovers (SAST) Regulations.

“We are pleased to welcome Multiples consortium as strategic partners in the Company. 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,” said Dilip Piramal, Chairman of VIP Industries.

Renuka Ramnath, Founder, MD and CEO of Multiples Alternate Asset Management, said “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.”

Shares of VIP Industries closed at ₹456 on Friday. Once the deal is completed, control of the company will be transferred to the Multiples-led consortium.

Arpwood Capital acted as exclusive financial advisor to the seller group while JM Financial will manage the open offer process. Legal advice was provided by AZB & Partners for the sellers, Khaitan & Co. for Multiples, and Anagram Partners for other consortium members.

VIP Industries Ltd. is Asia’s largest and the world’s second largest luggage maker, headquartered in Mumbai. A public limited Indian company manufacturing luggage and travel accessories, VIP Industries Ltd. has more than 10000 Point of Sale in its armoury apart from a well-developed network of retailers in 45 countries.