Image Source: The Hindu Business Line
In a significant development for the Indian luggage sector, the Competition Commission of India (CCI) has granted regulatory approval for a consortium led by Multiples Equity to acquire a substantial 32% stake in VIP Industries. This transaction, involving multiple private equity players including Samvibhag Securities and individual investors Mithun Padam Sacheti and Siddhartha Sacheti, marks a pivotal moment in VIP Industries’ corporate journey, potentially transforming its ownership landscape and future growth trajectory.
Key Highlights of the CCI Clearance and Stake Acquisition
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The approved transaction involves Multiples Private Equity Fund IV, Multiples Private Equity Gift Fund IV, Samvibhag Securities Pvt Ltd, and individual investors Mithun Padam Sacheti and Siddhartha Sacheti as key acquirers.
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The stake being acquired is up to 4.54 crore equity shares, approximately 32% of VIP Industries’ total paid-up capital.
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The shares are purchased from the promoter group led by Dilip Piramal, whose holding will reduce from 51.73% to approximately 19.73% post-deal.
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The acquisition price is ₹388 per share, reflecting a 15% discount to the market price at the time of announcement.
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Per SEBI Takeover Regulations, the deal triggers a mandatory open offer to acquire an additional 26% stake from public shareholders, which if fully accepted, will enable the consortium to control up to 58% of VIP Industries.
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The total value of the deal, including the open offer, is estimated at around ₹3,200 crore.
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Dilip Piramal will continue in a leadership role as Chairman Emeritus, ensuring continuity alongside investor-led governance changes.
Regulatory and Strategic Implications
The CCI's approval is a vital regulatory milestone ensuring the deal complies with competition laws designed to maintain fair practices in the Indian market. The consortium, led by Multiples Equity—a well-known alternate asset management company with investments across financial services, healthcare, consumer tech, and more—brings both capital and strategic expertise that can accelerate VIP Industries’ evolution in a competitive landscape.
The deal signifies a major shift in ownership structure, transitioning management control to the Multiples-led group. This transition allows Dilip Piramal and promoter entities to reduce their stake significantly while enabling VIP Industries to benefit from fresh capital infusion and new strategic perspectives.
Investor and Market Reactions
Following the announcement, the stock price of VIP Industries experienced a dip, reflecting market adjustment to the ownership change. Despite this, the company’s brand remains one of India’s most recognized in the luggage segment, backed by its legacy and extensive market reach domestically and in international markets.
Industry experts suggest that with additional financial muscle and operational guidance from experienced PE investors, VIP Industries can harness emerging growth opportunities in India’s evolving travel and lifestyle markets. These include expanding product portfolios, improving supply chain efficiencies, and capitalizing on rising consumer disposable incomes.
About the Buyers and Consortium
The consortium comprises:
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Multiples Private Equity Fund IV and Multiples Private Equity Gift Fund IV: Core drivers of the deal, known for their focus on high-potential sectors.
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Samvibhag Securities Pvt Ltd: A portfolio company linked to prominent investor Akash Bhanshali.
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Individual investors Mithun Padam Sacheti and Siddhartha Sacheti, both with a history of entrepreneurial ventures.
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This diverse group blends institutional investment strength with individual entrepreneurial insight, promising a collaborative approach toward steering VIP Industries’ future growth.
Next Steps and Market Outlook
The deal’s completion is contingent on the successful conclusion of the open offer mandated by SEBI, expected to consolidate the consortium’s majority control. The infusion of private equity funds is expected to not only bolster the company’s financials but also enable strategic expansions, new product innovations, and enhanced market penetration.
Market watchers will closely monitor how this ownership transition influences VIP Industries’ operational strategies and competitiveness in the luggage and travel accessories industry.
Source: Reuters, Economic Times, Business Standard, NDTV Profit
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