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%.
Meanwhile, 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.
Buyers and Sellers
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.
Details of the other buyers of VIP Industries’ shares could not be ascertained on the exchange.
Market Reaction
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.
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.
Consortium Details
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.
Implications for Indian Investors
This bulk deal is significant for Indian investors and traders, as it indicates a shift in the ownership structure of VIP Industries. The entry of new investors, such as Multiples Equity and Samvibhag Securities, could bring in fresh capital and expertise, potentially benefiting the company in the long run.
However, the sale of stake by promoters may also raise concerns about the company’s future prospects. Indian investors and traders should closely monitor the developments and assess the impact on the company’s stock price.
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