Multiples PE to acquire 32% stake in VIP Industries from promoters

Multiples Private Equity will acquire up to 32% of VIP Industries from the promoter group, led by the Dilip Piramal family, with an open offer to retail investors

Multiples Private Equity has signed a definitive agreement to acquire up to a 32 per cent stake in VIP Industries Ltd from the company’s promoter group led by the Dilip Piramal family, according to a regulatory filing by VIP Industries on Sunday.

 

Promoter entities—Kemp and Company Ltd, DGP Securities Ltd, Kiddy Plast Ltd, Piramal Vibhuti Investments Ltd, and Alcon Finance & Investment Ltd—have entered into a share purchase agreement (SPA) with a consortium of buyers led by Multiples PE Fund IV, Multiples Gift Fund IV, Samvibhag Securities Pvt Ltd, and individual investors Mithun Padam Sacheti and Siddhartha Sacheti. An open offer will be made to retail investors, as per the Sebi takeover code.

 

The transaction involves the sale of up to 4,54,46,305 equity shares, amounting to approximately 32 per cent of VIP’s total paid-up share capital, the statement said. 

The company shares closed at Rs 457 a share on Friday giving it a total valuation of Rs 6,481 crore. 

The promoter family owned 51 per cent stake in the company before the transaction.

  A new shareholders’ agreement signed between the investors and the Piramal group lays down governance rights, board representation, and transfer restrictions. Dilip Piramal, while stepping back from control, has reserved the right to nominate one family member or recommend an independent director on the board. The new investors will hold the right to nominate a majority of the board.

 

The transaction marks the growing appetite of private equity investors in India's branded consumer goods space. VIP Industries, which has faced challenges post-pandemic due to travel disruptions, has seen a revival in demand with a recovery in tourism and business travel.