VIP Industries Bulk Deal: 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.
Stake Sale Details
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%. This significant reduction in promoter holding is likely to have a major impact on the company’s future decisions and strategies, and investors should keep a close eye on the VIP Industries share price for any further developments.
Buyers of VIP Industries’ Shares
Multiples Equity, an alternative asset management company, 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.
Impact on Share Price
Shares of VIP Industries fell 4.01% to close at Rs 409 apiece on the BSE. Last month, a group of investors led by Multiples Equity received approval from the Competition Commission of India to acquire stakes in VIP Industries. This approval is a significant development for the company, and investors should consider the potential impact on the Indian stock market as a whole.
Background of the Stake Sale
VIP Industries promoters Dilip Piramal and Family, in July this year, had announced the sale of up to 32% of their stake in the company to a consortium led by Multiples Equity. 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.
Future Outlook
The stake sale in VIP Industries is a significant development for the company and the Indian stock market. Investors should keep a close eye on the company’s future decisions and strategies, as well as the VIP Industries share price, for any further developments. The luggage industry is a growing sector, and VIP Industries is a major player in this space. With the right strategies and investments, the company has the potential to drive growth and increase its market share.
Conclusion
In conclusion, the stake sale in VIP Industries is a significant development for the company and the Indian stock market. Investors should consider the potential impact of this development on the company’s future decisions and strategies, as well as the VIP Industries share price. With the right information and analysis, investors can make informed decisions and maximize their returns in the Indian stock market.