 "VIP Ind up 7% on reports Advent Int'l may acquire controlling stake")
VIP Industries shares climbed 7 per cent on Thursday and clocked an intraday high of Rs 492.45 per share on BSE. The stock was in demand after reports suggested that global private equity firm Advent International is reportedly in talks to acquire a controlling stake in the company.
Around 11:57 AM, VIP Industries' share price was up 6.25 percent at Rs 488.7 per share on BSE. In comparison, the BSE Sensex was down 0.64 per cent at 77,082.53. The market capitalisation of the company stood at Rs 6,940.2 crore. The 52-week high of the company was at Rs 668.1 per share and 52-week low of the company was at Rs 427.55 per share.
This development comes as a revival of sales talks from a year ago where the company had first decided to pare stakes.
The promoters of VIP Industries have put their entire stake (51.74 percent) up for sale, which could trigger an open offer as per regulatory guidelines, the report added.
In its Q2, VIP Industries reported a consolidated loss of Rs 38.5 crore as compared to a loss of Rs 2.43 crore a year ago.
Its revenue from operations for the quarter under review stood at Rs 543.94 crore as compared to Rs 538.1 crore a year ago. The company's total income stood at Rs 546.82 crore as compared to Rs 541.05 crore a year ago.
VIP Industries, founded in 1971 and headquartered in Mumbai, is one of India's leading manufacturers of luggage and travel accessories. The company produces a wide range of products, including suitcases, travel bags, trolleys, and backpacks, under popular brands such as VIP, Skybags, American Tourister, Aristocrat, and Carlo Rino.
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With a strong presence in India, VIP Industries also exports to over 50 countries, making it a significant player in the global luggage market. Known for its focus on innovation and design, the company continually develops products that incorporate advanced materials and technology.
In the past one year, VIP Industries shares have lost 21 per cent against Sensex's rise of 18 per cent.