VIP Industries Stake Sale: Promoters Divest 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.
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%.
New Investors in VIP Industries
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.
Background of the Deal
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.
What This Means for Investors
The stake sale by VIP Industries’ promoters and the entry of new investors could have significant implications for the company’s future growth and strategy.
Investors should keep a close eye on the company’s developments and announcements in the coming months to understand the impact of this deal on the company’s operations and financial performance.
Conclusion
In conclusion, the stake sale by VIP Industries’ promoters and the entry of new investors is a significant development for the company and its investors.
As the company navigates this change, investors should be cautious and keep a close eye on the company’s developments to make informed investment decisions.
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