VIP Industries Promoters Offload Stake Worth Rs 343 Crore
VIP Industries Ltd.’s promoters on Friday divested 6.22% stake in the luggage and travel accessories maker for Rs 343 crore through open market transactions. Kiddy Plast Ltd and Piramal Vibhuti Investments sold a total of 88.40 lakh equity shares, representing a 6.22% stake in the Mumbai-based company, according to the bulk deal data available on the BSE.
The shares were offloaded in the price range of Rs 388-388.25 apiece, taking the combined deal value to Rs 343.19 crore. After the stake sale, the combined holding of promoters and promoter group entities has come down to 45.51% from 51.73%.
What Led to the Stake Sale?
The stake sale is part of a larger deal where a group of investors led by Multiples Equity received approval from the Competition Commission of India to acquire stakes in VIP Industries. The consortium comprises Multiples Private Equity Fund IV (MPEF), Multiples Private Equity Gift Fund IV (MPGF), Samvibhag Securities, Caratlane founder Mithun Padam Sacheti, and his brother, Siddhartha Sacheti.
Multiples, which focuses on core sectors of financial services, pharma & healthcare, consumer and technology, and Samvibhag Securities, is a portfolio company of ace investor Akash Bhanshali. The investment firm has been actively investing in Indian companies, and its interest in VIP Industries is seen as a positive development for the company.
Impact on the Company’s Share Price
Shares of VIP Industries fell 4.01% to close at Rs 409 apiece on the BSE. The decline in share price can be attributed to the large stake sale by the promoters, which may have led to a temporary increase in supply of shares in the market.
However, the long-term impact of the stake sale on the company’s share price will depend on various factors, including the company’s financial performance, industry trends, and the overall market sentiment. Investors can visit our website to get more information on how to invest in stock market and make informed decisions.
Buying Activity by Other Investors
Multiples Equity, through its affiliates — Multiples Private Equity Fund IV and Multiples Private Equity GIFT Fund IV, bought 60.11 lakh shares or 4.23% stake in VIP Industries. In addition, Samvibhag Securities Pvt Ltd purchased 22.12 lakh shares, or 1.55% stake, in the luggage and travel accessories maker.
These entities picked up a total of 82.23 lakh shares, or 5.8% stake, in VIP Industries. The combined transaction was valued at around Rs 319.07 crore, and executed at an average price of Rs 388 apiece.
What Does this Mean for Investors?
The stake sale by the promoters and the buying activity by other investors are significant developments for VIP Industries. The investment by Multiples Equity and other investors is seen as a vote of confidence in the company’s growth potential.
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Conclusion
The stake sale by the promoters of VIP Industries and the buying activity by other investors are significant developments for the company. While the short-term impact on the share price may be negative, the long-term implications of the stake sale will depend on various factors, including the company’s financial performance and industry trends.
Investors should keep a close eye on the company’s developments and industry trends to make informed decisions. They can also visit our website to get more information on Indian stock market and Q1 results to stay ahead in the market.