VIP Industries Promoters Sell 32% Stake to Multiples PE to Revive Growth

The Dilip Piramal family, who started and built VIP Industries, has decided to cut their stake in the company to help revive growth. They sold about 32% stake (45.44 million shares) to investors, including Multiples Private Equity, Samvibhag Securities, and CaratLane’s founders. The deal was valued at ₹1,763 crore, pricing each share at ₹388, 15% lower than Friday’s closing price.

Open Offer to Buy More Shares

The new buyers will also make a mandatory open offer to acquire an additional 26% stake (37 million shares) at ₹388 per share. This could cost them another ₹1,437 crore. If the offer is fully accepted, the buyers will own about 58% of VIP Industries. The total deal could reach ₹3,200 crore.

After the transaction, promoter holding will drop sharply from nearly 52% to 19.84%. While Multiples PE will take management control, Dilip Piramal will stay on as chairman emeritus.

Why This Move Was Needed

VIP Industries, founded in 1968, has been one of India’s most recognised luggage brands. But over the past five years, it has lost market share due to rising competition.

• Market share fell from 47% to 38%
• Safari Industries and Samsonite gained ground
• New digital-first brands like Mokobara and Nasher Miles have also captured customers

In FY25, VIP’s revenue slipped 3% to ₹2,178 crore, even as volumes grew 11%. The company posted a net loss, compared to ₹54 crore profit in FY24. Heavy discounting and online price wars have hurt margins.

Management’s Plans Ahead

Dilip Piramal said the deal will help restore VIP’s leadership in luggage and boost future growth. Multiples PE’s Renuka Ramnath added that the transition would unlock the company’s next growth phase.

Managing Director Neetu Kashiramka said VIP is working on balancing its portfolio with more premium offerings and reducing slow-moving stock to improve profitability.

Read More: Avenue Supermarts Expands E-Commerce Presence with ₹175 Crore Infusion in DMart Ready!

VIP Industries Share Price

VIP Industries share price was trading at ₹481.00 as of 2:35 pm on July 15. During the day, the stock opened at ₹481.65, touched a high of ₹492.30 and a low of ₹473.00. The company has a market capitalisation of ₹6,830 crore. Over the past 52 weeks, the stock has hit a high of ₹589.75 and a low of ₹248.35.

Conclusion

This major stake sale marks a turning point for VIP Industries. While the company faces tough competition and shifting consumer tastes, the fresh capital and new ownership could help it regain momentum in the Indian luggage market.

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