Dilip Piramal and family have announced the decision to divest their stake in VIP Industries. The company has informed that Chairman Dilip Piramal and family (sellers) have signed a definitive agreement with the Multiples consortium to sell up to 32% of their stake. This transaction will trigger an open offer in line with the takeover regulations of the Securities and Exchange Board of India (Sebi).
Following the completion of the transaction, control of VIP Industries will shift to Multiples Private Equity, while Dilip Piramal and family will remain shareholders. The company, in its regulatory filing, also stated that Dilip Piramal will take on the role of Chairman Emeritus.
Welcoming the new partners, Dilip Piramal said, “We are pleased to welcome the Multiples consortium as strategic partners in the company. This marks a significant step towards reviving the company’s legacy and helping it reclaim its position in the Indian luggage market, where it has faced challenges in recent years.”
The deal, including the open offer, is subject to approval from the Competition Commission of India (CCI) and will proceed in accordance with Sebi’s takeover rules. Arpwood Capital served as the exclusive financial advisor to the sellers.
Renuka Ramnath, Founder, Managing Director and Chief Executive Officer of Multiples Alternate Asset Management, said, “Multiples is excited to lead the ownership transition of this strong legacy business and build on its rich heritage to unlock the next phase of growth.”
JM Financial is managing the open offer. AZB Partners served as legal advisor to the sellers, while Khaitan and Company acted as legal advisor to Multiples. Anagram Partners advised the consortium members of Multiples, according to the regulatory filing.
