Promoters of VIP Industries - Piramal Family Plans 32% Stake Sale, Triggers Open Offer

Mumbai, July 14, 2025 – A consortium led by Multiples Alternate Asset Management and Samvibhag Securities is set to take control of VIP Industries. Joining them in the deal are CaratLane founder Mithun Sacheti and his brother Siddhartha. The group will first buy a 32% stake from the Piramal family. This will trigger a mandatory open offer for another 26% to raise their holding to 58% potentially.

Deal Valuation and Structure

The transaction is pegged at ₹1,763 crore, pricing VIP Industries shares at ₹388 apiece, which is approximately 15% below the last traded price of ₹456.40 on the BSE as of Friday. The stock has risen over 12% in the past month, taking the company’s market capitalisation to ₹6,482 crore.

Promoter Exit and Shareholding Changes

The Piramal family currently owns a 51.7% stake in VIP Industries. As part of the agreement, promoter group entities including Kemp & Company, DGP Securities, Kiddy Plast, Piramal Vibhuti Investments, and Alcon Finance & Investment will offload up to 4.5 crore shares to the acquiring consortium. Institutional stakeholders in the public shareholding include SBI Flexicap Fund (7%) and Tata Small Cap Fund (1.54%), while foreign portfolio investors hold 7.68%.

Strategic Shift and Industry Context

The acquisition marks a major strategic shift for VIP Industries, which has been grappling with intense competition. While its portfolio includes well-known brands like VIP, Carlton, and Skybags, the company has been losing market share to Samsonite in the premium segment and Safari Industries in the mass market. Emerging brands like Mokobara and Uppercase have also intensified price competition, impacting industry profitability.

Financial Performance

VIP Industries closed FY25 with net sales of ₹2,169 crore, down 2% from the previous year. The company also slipped into the red, posting a net loss of ₹81 crore. Despite the financial setback, stable demand from tourism and corporate travel continues to support industry fundamentals, though average realisations have come under pressure.

VIP Industries Stock Performance

VIP Industries shares closed at ₹480.95 which is a 5.34% gain on July 14, 2025. VIP Industries shares have witnessed a 0.87% gain over the last year, a 0.43% decline year-to-date, and a 13.55% increase in the previous month.

Notable Exit

This deal follows Mithun Sacheti’s landmark exit from CaratLane in 2023, when he sold his 27% stake to Titan for ₹4,621 crore, underscoring his growing influence in the Indian consumer sector.

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