Major Stake Shift: Multiples Equity's Big Buy in VIP Industries
Multiples Equity seeks CCI approval to acquire a 32% stake in VIP Industries. The proposed acquisition involves several investors, including the Sacheti brothers. Promoter Dilip Piramal and family will retain a shareholding post-acquisition, with Multiples acquiring overall control. VIP, facing competitive pressure, is a leading luggage manufacturer.
- Country:
- India
A consortium led by Multiples Equity has requested clearance from the Fair Trade Regulator CCI to purchase a 32 percent stake in VIP Industries, a prominent maker of luggage and travel accessories. This move follows the announcement by VIP's promoters, Dilip Piramal and family, to sell nearly a third of their stake.
The purchasers include Multiples Private Equity Fund IV, Samvibhag Securities, and Caratlane founder Mithun Padam Sacheti. The plan, outlined in a CCI submission, reportedly will not alter India's competitive landscape significantly. VIP, a major brand in the luggage market, has been battling fierce competition.
Although the Piramal family will retain shares, control will shift to Multiples, and Dilip Piramal will become Chairman Emeritus. This acquisition will also trigger an open offer to buy an additional 26 percent from the open market. The transaction marks a significant shift in VIP's governance structure.
(With inputs from agencies.)
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