VIP Industries Share Price Drops 4.5% as Promoters Plan 32% Stake Sale

On Monday, July 14, 2025, VIP Industries share price dropped over 4.5% after the company’s promoters, including Dilip Piramal and his family, signed an agreement to sell up to 32% of their stake in the business.

At 9:30 AM, the stock was trading at ₹435 per share on the NSE. Despite this decline, the stock had risen more than 5% in the past month, even in a fluctuating market.

Who’s Buying the Stake?

A consortium of buyers including Multiples Private Equity Fund IV, Multiples Private Equity Gift Fund IV, Samvibhag Securities Pvt. Ltd., along with investors Mithun and Siddhartha Sancheti—will purchase the 32% stake.

This deal was officially announced on Sunday evening.

Deal Triggers SEBI’s Open Offer Rules

Since the acquisition is over 25%, it will trigger SEBI's mandatory open offer rule. This means the acquirers must also offer to purchase an additional 26% stake from public shareholders.

Deal Valuation and Pricing

• The 32% stake is being bought for ₹1,763 crore at ₹388 per share.
• This price is 15% lower than VIP’s last trading price on Friday.
• The open offer for an extra 26% will cost ₹1,437 crore.
• In total, the acquirers are set to invest ₹3,200 crore for a 58% stake in the company.

Who’s Selling the Stake?

The sellers include:

• DGP Securities
• Kemp and Company Ltd.
• Piramal Vibhuti Investments Ltd.
• Alcon Finance and Investments Ltd.
• DGP Enterprises Pvt. Ltd.
• Kiddy Plast Ltd.
• Dilip Piramal

Promoters Welcome New Strategic Investors

Dilip Piramal, Chairman of VIP Industries, shared a positive outlook on the deal. He said the partnership with the Multiples consortium is an important step in reviving the company’s long-standing brand in the Indian luggage market, where it has recently faced challenges.

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About VIP Industries

VIP Industries is a luggage company from India, headquartered in Mumbai, Maharashtra. It produces luggage and travel accessories. The company is the world’s second-biggest luggage maker and the largest in India and Asia.

Conclusion

The deal marks a significant shift in ownership at VIP Industries. While the share price fell due to the discounted deal price, the entry of new strategic investors could support the company’s efforts to rebuild its brand and regain market share in the competitive luggage industry.

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