VIP Industries , a leading luggage manufacturer, has announced significant changes in its ownership structure and leadership. The company's promoter group has agreed to sell a substantial stake to a consortium led by Multiples Private Equity, potentially reshaping the future of this iconic Indian brand.

Ownership Transition

The Dilip Piramal family, which has been at the helm of VIP Industries for decades, has entered into a definitive agreement to sell up to 32% of their stake in the company. The buyers, collectively referred to as the Multiples Consortium, include:

• Multiples Private Equity Fund IV
• Multiples Private Equity Gift Fund IV
• Samvibhag Securities Private Limited
• Individual investors Mithun Padam Sacheti and Siddhartha Sacheti

This transaction will trigger an open offer, as mandated by SEBI regulations, allowing the Multiples Consortium to acquire an additional 26% stake from public shareholders. The open offer price has been set at ₹388.00 per share, valuing the potential 26% stake at approximately ₹1,437.78 crore.

Leadership Changes

In a parallel development, VIP Industries has appointed Dilip Piramal as Chairman Emeritus. This move recognizes Mr. Piramal's long-standing contribution to the company while paving the way for new leadership under the incoming investors.

Financial Implications

The share purchase agreement involves the sale of up to 4,54,46,305 equity shares, representing about 32% of VIP Industries' total paid-up share capital. The transaction price of ₹388.00 per share values this stake at approximately ₹1,763.32 crore.

Future Governance

Upon completion of the transaction, the Multiples Consortium will acquire management control of VIP Industries. The shareholders' agreement outlines several key governance changes:

1. The Multiples Consortium will have the right to nominate the majority of directors to the company's board.
2. Dilip Piramal retains the right to recommend one independent director or nominate a family member as a non-independent, non-executive director.
3. The existing promoter group entities and Dilip Piramal will have voting obligations aligned with the Multiples Consortium on most matters, with some exceptions.

Market Impact

This transaction marks a significant shift in the Indian luggage industry landscape. VIP Industries, with its strong brand portfolio including VIP, Skybags, Carlton, Aristocrat, and Caprese, has been a market leader in Asia and the world's second-largest luggage maker.

Renuka Ramnath, Founder, MD and CEO of Multiples Alternate Asset Management, expressed enthusiasm about the deal, stating, "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."

Regulatory Approvals

The completion of this transaction is subject to necessary regulatory approvals, including clearance from the Competition Commission of India.

As VIP Industries embarks on this new chapter, stakeholders will be watching closely to see how the company leverages its strong brand legacy under new ownership to navigate the evolving luggage and travel accessories market.

VIP Industries , Asia's largest luggage manufacturer, is set for a significant ownership change as the Piramal family agrees to sell up to 32% of their stake to a consortium led by Multiples Private Equity. This move marks a pivotal moment for the company, potentially reshaping its future direction and management.

Key Transaction Details

The share purchase agreement, signed on July 13, 2025, outlines the following details:

• Sellers: DGP Securities Limited, Piramal Vibhuti Investments Limited, Kiddy Plast Limited, Kemp and Company Limited, and Alcon Finance & Investments Limited.
• Buyers: A consortium led by Multiples Private Equity Fund IV and Multiples Private Equity Gift Fund IV, along with Samvibhag Securities Private Limited, Mithun Padam Sacheti, and Siddhartha Sacheti.
• Stake: Up to 4,54,46,305 equity shares, representing approximately 32% of VIP Industries' total paid-up share capital.
• Offer Price: INR 388.00 per share, valuing the deal at up to INR 1,763.32 crore.

Open Offer and Management Control

Following the acquisition, the Multiples-led consortium will be required to make an open offer to public shareholders for an additional 26% stake, as per SEBI regulations. This offer will be made at INR 388.00 per share, potentially increasing the consortium's stake to 58% if fully subscribed.

Upon completion of the transaction, the consortium will acquire management control of VIP Industries. The deal is subject to regulatory approvals, including clearance from the Competition Commission of India.

Changes in Governance

The shareholders' agreement outlines several key changes in VIP Industries' governance structure:

1. The Multiples-led consortium will have the right to nominate the majority of directors to the company's board.
2. Dilip Piramal, the current promoter, will retain the right to recommend one independent director or nominate a family member as a non-independent, non-executive director.
3. The Piramal family and other selling entities will have voting obligations aligned with the new majority shareholders on most matters, with some exceptions.

Impact on Shareholding

Assuming full sale of the proposed stake and no acceptance in the open offer, the post-transaction shareholding would be:

Future Outlook

This transaction represents a significant shift for VIP Industries, a company with a rich legacy in the luggage manufacturing sector. The entry of the Multiples-led consortium as a major shareholder is expected to bring fresh perspectives and potentially new strategies to drive growth and innovation in the company.

Dilip Piramal, Chairman of VIP Industries, commented on the deal: "We are pleased to welcome 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."

Renuka Ramnath, Founder, MD and CEO of Multiples Alternate Asset Management, expressed enthusiasm about the acquisition: "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."

As the luggage industry continues to evolve, particularly in the wake of changing travel patterns and consumer preferences, this new partnership could potentially position VIP Industries to better navigate future challenges and opportunities in the market.