VIP Industries Stake Sale: Promoters Offload 6.22% Stake for 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. The shares were offloaded in the price range of Rs 388-388.25 apiece, taking the combined deal value to Rs 343.19 crore.
According to the bulk deal data available on the BSE, 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. After the stake sale, the combined holding of promoters and promoter group entities has come down to 45.51% from 51.73%.
Who Bought the Stake?
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. To know more about Indian stock market trends, visit our website.
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. To stay updated with the latest Nifty today news and trends, follow our blog.
Promoters’ Stake Sale Plan
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. For more information on Sensex news and updates, visit our website.
What Does This Mean for Investors?
The stake sale by VIP Industries’ promoters is a significant development for investors. The entry of new investors, such as Multiples Equity and Samvibhag Securities, could bring in fresh capital and expertise to the company. However, the decrease in promoter holding could also raise concerns about the company’s future direction. To know more about Q1 results and their impact on the stock market, follow our blog.
Conclusion
In conclusion, the stake sale by VIP Industries’ promoters is a significant development that could have implications for the company’s future growth and direction. Investors should closely monitor the company’s performance and any further developments related to the stake sale. For more information on Indian markets and stock market trends, visit our website.