Dilip Piramal, family sell 32% stake of VIP Industries to Multiples Consortium

Business tycoon Dilip Piramal and his family have sold a 32% stake in the company. According to the stock exchange filing, VIP Industries, the maker of brands such as Skybags, Caprese, Alfa and Aristocrat, has entered into a definitive agreement with the Multiples Consortium to sell a 32% stake in the company. The transaction will trigger an open offer in accordance with the Securities and Exchange Board of India (Sebi) guidelines.

Following the completion of the transaction, the control of the company will be transferred to multiple private equity firms, VIP Industries. However, the Piramal family will continue to remain the shareholders in the company, with Dilip Piramal to be the Chairman Emeritus of the company.

Dilip Piramal said that the decision is a significant step towards reviving the company's strong legacy and helping it regain its foothold in the luggage market.

"We are pleased to welcome the 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," Dilip Piramal said.

Renuka Ramnath, founder and CEO of Multiple Alternate Asset Management, added, "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".

In another exchange filing, JM Financial informed about the acquisition deal. The filing mentioned that Multiples Private Equity Fund IV and Multiples Private Equity Gift Fund IV, together with Samvibhag Securities Private Limited, Mithun Padam Sacheti, Siddhartha Sacheti and Profitex Shares and Securities Private Limited, have announced an open offer for acquisition of up to 3,70,56,229 fully paid-up equity shares of face value of Rs 2/- each from the public shareholders of the target company, representing 26% of the Expanded Share Capital, at a price of Rs 388 per equity share, aggregating to total consideration of up to Rs 1,437 crore payable in cash.

Arpwood Capital Private Limited acted as the exclusive financial advisor to the sellers in the said transaction, while 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.

Multiples focuses on core sectors of financial services, pharma & healthcare, consumer, technology, and green economy. Some of Multiples’ investment partnerships include ACKO, Delhivery, Dream Sports, Encube, India Energy Exchange, Kogta Financial, Licious, Milltec, MoEngage, PVR, Quantiphi, TI Clean Mobility, Vastu Housing Finance, and Zenex.