VIP Industries shares slip 5.5% as Dipal Piramal, family offload 32% stake

VIP Industries Stake Sell: Shares of VIP Industries slipped 5.5 per cent, hitting an intraday low of ₹431.10 on Monday, after promoter group, Dipal Piramal and family, announced the sale of their 32 per cent stake in the company. In a recent exchange filing, the luggage maker stated that the promoters have entered into a definitive agreement with a group of sellers.

 

At 09:30 AM, VIP Industries' shares were trading at ₹434.50, down by 4.92 per cent on the National Stock Exchange. In comparison, the Nifty50 was trading largely flat, albeit in the negative territory, quoting 25,075.05. Around 3.32 million shares have changed hands on the counter, collectively, on the NSE and BSE till the time of writing this report.  So far this year, shares of the company have struggled to trade in green, experiencing a drop of 5.12 per cent.  CATCH STOCK MARKET LIVE UPDATES TODAY

VIP Industries Promoter stake sale

As per the agreement, Piramals will sell up to 32 per cent of their stake to the Multiples consortium, which includes Samvibhag Securities Private Ltd., Mithun Padam Sacheti, Siddhartha Sacheti and Profitex Shares and Securities Pvt Ltd.  

 

This stake sale will trigger an open offer, wherein the new buyers will be acquiring up to 37 million shares (representing 26 per cent of the expanded share capital) from public shareholders, at a price of ₹388 per equity share. This will result in a total payout of around ₹1,437.78 crore, assuming all public shareholders accept the offer. As per the exchange filing, the payment will be made entirely in cash.

 

"We are pleased to welcome the 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," said Dilip Piramal, chairman of the company.  ALSO READ | Wockhardt shares rise 2% after exiting US generics business

VIP Industries Share Price

The Indian company is Asia's largest manufacturer of luggage and other travel accessories. VIP Industries was incorporated in 1971 and has over 8000 employees across the globe. However, the shares of the company have remained largely flat on the bourses, signalling muted investor sentiment. On an annual basis, VIP Industries shares have witnessed a mere surge of just 2 per cent on the BSE.  

Should you buy, hold or sell the stock?

 

The VIP Industries stock, according to chart patterns, is seen trading above its 20-DMA. On the long-term chart, VIP stock is seen facing some resistance around its 100-Month Moving Average, which stands at ₹448; above which the near hurdle is seen at ₹459. On the upside, sustenance above the long-term hurdles can trigger a rally towards ₹542 levels. Intermediate resistance can be anticipated around ₹488 and ₹523 levels. DETAILED TECH STRATEGY HERE