Dilip Piramal family to offload 32% stake in VIP Industries; stock nosedives 5%

Shares of VIP Industries fell by over 5% in early trade on Monday after the company's promoters, Dilip Piramal and family, announced that they would divest their stake in the company, triggering investor concerns over the ownership change. The offer price for the transaction is ₹388 per share, a 15% discount to VIP’s last closing price on Friday.

Weighed down by the development, the VIP Industries stock price tumbled by as much as 5.5% to ₹431.30 on the BSE. Earlier today, the small-cap stock opened at ₹441.75, down 3.2% over its previous closing price. On Friday, the stock ended 1.7% higher at ₹456.40 on the BSE, with a market capitalisation of ₹6,482 crore.

At the time of reporting, shares of VIP Industries were trading at ₹437.80, down 4.08%, while its market cap dropped by ₹264 crore to ₹6,218 crore.

The counter touched its 52-week high of ₹589.95 on September 24, 2024, and a 52-week low of ₹248.55 on April 7, 2025.

In an exchange filing on Sunday, VIP Industries said that Dilip Piramal and family have entered into a definitive agreement to sell up to 32% stake in the company to the Multiples consortium. The transaction will lead to a mandatory open offer for an additional 26% stake, shifting control to the buyer consortium.

Multiples Private Equity Fund IV, along with other acquirers such as Samvibhag Securities, Mithun Padam Sacheti, Siddhartha Sacheti, and Profitex Shares and Securities have announced an open offer to acquire up to 3.71 crore equity shares of VIP Industries, representing 26% of the expanded share capital.

“The transaction, including the open offer, is subject to approval of the Competition Commission of India and will be in accordance with the Sebi Takeover Regulations,” the release noted.

Following the completion of the deal, control of VIP Industries will shift to Multiples Private Equity, while the Piramal family will retain a minority stake in the company, the release read.

As part of the new arrangement, Dilip Piramal will be Chairman Emeritus, according to the filing.

“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,” said Dilip Piramal, chairman of the company.

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.”

Arpwood Capital Private Limited acted as the exclusive financial advisor to the sellers in the said transaction. JM Financial is the open offer manager. AZB & Partners acted as legal advisor to the sellers. Khaitan & Company acted as the legal advisor to Multiples. Anagram Partners acted as the legal advisor to the consortium members of Multiples. 

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