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.

VIP Industries experienced a significant shareholding change as Multiples Private Equity funds and associated entities acquired a substantial 26.07% stake through open market transactions on December 24, 2025. The acquisition involved the purchase of 3,70,32,606 shares, executed pursuant to a share purchase agreement dated July 13, 2025.

Acquisition Details

The share acquisition was completed by six entities led by Multiples Private Equity Fund IV and Multiples Private Equity Gift Fund IV, along with four persons acting in concert. The transaction represents a major strategic investment in the luggage and travel accessories company.

Pre and Post-Transaction Holdings

The shareholding pattern shows a dramatic increase in the acquirer group's stake following the open market acquisition. Before the transaction, the six entities collectively held only 5.99% of VIP Industries' share capital.

Regulatory Compliance and Structure

The disclosure was made pursuant to Regulation 29(2) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The acquiring entities submitted their respective disclosures to both BSE Limited and National Stock Exchange of India Limited on December 24, 2025.

The Multiples Private Equity funds are classified as promoters of the Target Company, while the persons acting in concert - Samvibhag Securities Private Limited, Mithun Padam Sacheti, and Siddhartha Sacheti - are not members of the promoter group. The transaction was executed through open market acquisitions based on a share purchase agreement with certain members of the existing promoter group.

Share Capital Impact

The company's equity share capital remained unchanged at 14,20,51,434 equity shares of ₹2.00 each, totaling ₹28,41,02,868. The acquisition represents a significant consolidation of ownership, with the Multiples Private Equity group now holding nearly one-third of the company's total share capital through their coordinated investment approach.