VIP Industries Limited has announced the assignment of lease for its non-core asset in Nagpur for ₹51.18 crores. The company disclosed this transaction under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, on December 31, 2025.

Transaction Details

The assignment involves the transfer of lease rights for the Nagpur Property to DGP Realty Nagpur Private Limited. The property is strategically located at Plot no L4 & L5 Nagpur Industrial Area, Village Nildoh, Taluka-Hingna and District Nagpur.

Related Party Transaction Structure

The transaction involves a related party as DGP Realty Nagpur Private Limited is a wholly owned subsidiary of Piramal Vibhuti Investments Limited, which forms part of VIP Industries' promoter group. However, the company has clarified that this does not constitute a material related party transaction under SEBI Listing Regulations or the company's internal policy on related party transactions.

Regulatory Compliance

The assignment is subject to receipt of approval from the Maharashtra Industrial Development Corporation. VIP Industries has confirmed that the transaction is being carried out at arm's length, ensuring compliance with regulatory requirements for related party transactions. The company has fulfilled its disclosure obligations under the prescribed format of Regulation 30(4) read with Clause 5 of Para B of Part A of Schedule III of the Listing Regulations.

Strategic Implications

This transaction represents VIP Industries' continued focus on optimizing its asset portfolio by divesting non-core properties. The assignment of the Nagpur property lease allows the company to monetize an industrial asset while maintaining compliance with all regulatory requirements and corporate governance standards.

Promoters of VIP Industries are looking to sell an additional 4% stake through a block deal, with sources indicating that the book-building process has already been initiated by bankers. The transaction represents the final leg of promoter selling in the luggage manufacturer.

Transaction Details and Timeline

According to sources with knowledge of the matter, the book-building process is underway and the transaction is likely to be executed soon. Post the proposed block deal, promoters are expected to retain around 16% stake in the company.

Strategic Context

The stake sale process represents the final phase of promoter divestment. Earlier this month, the promoters had completed the transfer of the remaining 26% stake to Multiples PE, marking a significant shift in the company's ownership structure.

"Getting a PE investor is the best thing that has happened to VIP," Chairman Dilip Piramal had stated. "They typically stay invested for 5–7 years and aim to grow the business 2–3x. That's the kind of push the company needs now."

Market Performance

Shares of VIP Industries ended 0.70% higher at ₹382.00. However, the stock has recorded losses of 21% for the year, marking its worst annual performance since 2013 when the stock had declined 24%.

Company Overview

VIP Industries operates in the luggage and travel accessories segment, manufacturing and marketing various brands in the travel goods category. The company has established itself as a prominent player in the Indian luggage market with a diverse product portfolio.