A consortium of homegrown private equity fund Multiples Alternate Asset Management and Samvibhag Securities will buy an about 32 per cent stake of VIP Industries from promoter Dilip Piramal & family, the luggage maker said on Sunday.
Mithun Sacheti, founder of jewellery retailer CaratLane, and his brother Siddhartha are also part of the consortium.
The buyers will launch an open offer later to acquire an additional 26 per cent stake from the company’s public shareholders that could take their stake to 58 per cent .
VIP Industries did not disclose the financial terms in its filing with stock exchanges. Its shares closed at Rs 456.40 on the BSE Friday, rising more than 12 per cent in the past one month, giving it a market capitalisation of Rs6,482 crore.
Sources aware of the deal terms told ET that the price would be lower than the current market price for both the initial purchase of shares from the promoters and the open offer.
The Dilip Piramal & family owns a 51.7 per cent stake. Among the public shareholders, Tata Small Cap Fund held a 1.54 per cent stake and SBI Flexicap Fund owned 7 per cent as of March 31. Foreign portfolio investors held a 7.68 per cent stake.
Kemp & Company, DGP Securities, Kiddy Plast, Piramal Vibhuti Investments and Alcon Finance & Investment, which are entities forming part of the promoter group, have entered into an agreement to sell up to 45 million shares to the consortium, according to the filing.
Pursuant to the terms, certain purchasers will acquire management and control of the company and would accordingly be required to make an open-offer for the purchase of additional 26 per cent stake in the company, it said.
In 2023, Mithun Sacheti exited CaratLane by selling his 27 per cent stake to Tata Group’s Titan for Rs 4,621 crore, in one of the leading founder exits in India.
Arpwood Capital acted as the exclusive financial advisor to the sellers.
VIP Industries owns brands such as VIP, Carlton and Skybags. It has been losing out to Samsonite in the premium end and Safari Industries at the mass-end of the segment.
In addition, new entrants such as Mokobara, Assembly and Uppercase have turned to offering discounts to lure buyers, impacting luggage industry profits or widening losses.
But luggage demand remains stable, backed by continued penetration of hard luggage, steady tourism and corporate travel. However, realisations have reduced due to two factors.
The company posted a 2 per cent decline in net sales at Rs2,169 crore in fiscal 2025, when it posted a net loss of Rs81 crore.
