Consortium Aims for 32% Stake in VIP Industries

A consortium led by Multiples Alternate Asset Management has officially approached the Competition Commission of India (CCI) for approval to acquire a significant 32% stake in VIP Industries, a leading luggage manufacturer. This move comes after the announcement on July 13 by VIP Industries' promoters, the Piramal family, to sell part of their shareholding.

Deal to Trigger Open Offer

The acquisition is set to initiate a mandatory open offer for an additional 26% stake from public shareholders, adhering to Sebi's takeover code. The total deal, assuming full acceptance of the open offer, is valued at an impressive Rs 1,437.78 crore.

Strategic Shift in Control

Upon completion, control of VIP Industries will transition to Multiples, though the Piramal family will retain their shareholder status, with Dilip Piramal taking on the role of Chairman Emeritus. The investor group includes notable names such as Multiples Private Equity Fund IV, Samvibhag Securities, and Caratlane founder Mithun Padam Sacheti.

Market Impact and Competition

VIP Industries, with a market capitalization of Rs 6,389.47 crore, faces stiff competition from brands like Samsonite and Safari. Despite a dominant market share in India's branded luggage space, increasing competition is challenging its position.