VIP Industries, a luggage maker, announced that Dilip Piramal and Family have entered into a definitive agreement with a private equity fund, Multiples Alternatives, Samvibhag Securities, and others to sell up to 32% stake in the company for ₹1763.3 crore.
The transaction will trigger an open offer under the SEBI Takeover Regulations and is likely to help buyers acquire more stake in the company.
Kemp & Co, DGP Securities, Piramal Vibhuti Investments, Alcon Finance and Kiddy Plast, forming part of the promoter group and buyers consortium, include Multiples PE funds, Samvibhag Securities, Mithun Padam Sancheti and Siddhartha Sancheti.
DGP Securities held around 27% stake in VIP Industries at the end of March, Vibhuti Investments held 15.7%, while Kemp & Company had 2.4 per cent stake, Kiddy Plast 2.3% and Alcon Finance around 2%. Promoter Dilip Piramal held a small stake of 0.5%.
Multiples PE consortium will also be making an open offer to acquire an additional 26% stake in the luggage company for ₹1,437.8 crore, and post the acquisition, they will acquire management and control of VIP Industries.
Upon completion of the transaction, control of the Company will be transferred to Multiples Private Equity while Dilip Piramal and Family will continue to be shareholders in the Company. Dilip Piramal will be Chairman Emeritus.
Dilip Piramal, Chairman, VIP Industries, said, “We are pleased to welcome Multiples consortium as strategic partners in the Company. This marks an important step toward reviving the company’s strong legacy and helping it regain its foothold in the Indian luggage market, where it has struggled in recent years.”
Renuka Ramnath, Founder, MD and CEO of Multiples Alternate Asset Management, said, “Multiples is excited to lead the ownership transition of the very strong legacy business of VIP and further build on its rich heritage and unlock its next phase of growth.”
