The Indian business world is witnessing a significant shift as Dilip Piramal and his family are set to divest a substantial stake in VIP Industries, the luggage and travel accessories giant with a market capitalization of ₹6,800 crore. This move marks a major change for the company that has been synonymous with suitcases for generations of Indians.
According to an exchange filing on Sunday, July 13, 2025, the Piramal family has entered into a definitive agreement to sell up to 32% of their stake in VIP Industries to a consortium led by Multiples Private Equity Fund IV. This transaction will also trigger a mandatory open offer for an additional 26% stake, potentially shifting control of the company to the buyer consortium. The offer price for the transaction is ₹388 per share, a 15% discount to VIP's last closing price on Friday. Assuming full acceptance of the open offer, the total consideration payable by Multiples will be ₹1,437.78 crore.
The announcement led to a decline in VIP Industries' stock price, with shares falling by over 5% in early trade on Monday. The stock reached a 52-week high of ₹589.95 on September 24, 2024, and a 52-week low of ₹248.55 on April 7, 2025. On Friday, July 11, 2025, the stock closed at ₹456.40 on the BSE, with a market capitalization of ₹6,482 crore. Following the announcement, the market capitalization decreased by ₹264 crore to ₹6,218 crore.
Dilip Piramal, the Chairman of VIP Industries, explained that the decision to sell the stake was influenced by the younger generation of his family not being keen on managing the business. "We are a family-owned business, and the next generation is not very keen on running it," Piramal told NDTV Profit. He added, "In all our 53 years of existence, VIP has been the market leader. But in the last five years, we have been losing market share. Last year, we reported losses in all four quarters". Piramal also clarified that he is not looking to sell beyond a 32% stake, emphasizing that he needs good value for his shares and that the company is facing significant management issues.
Despite the change in ownership, Dilip Piramal will remain involved with VIP Industries as Chairman Emeritus, and the Piramal family will continue to be shareholders in the company. Piramal welcomed the Multiples consortium as 'strategic partners' in the company. The Multiples consortium includes Multiples Private Equity Fund IV, Multiples Private Equity Gift Fund IV, Samvibhag Securities, Mithun Padam Sacheti, Siddhartha Sacheti, and Profitex Shares and Securities.
The transaction, including the open offer, is subject to the approval of the Competition Commission of India and will be in accordance with the SEBI Takeover Regulations.
Piramal, 75, expressed regret that he did not sell the business when the share price was ₹700. He stated that two years ago, the market cap was ₹10,000 crore, and they received an offer at that price, but the management at the time believed the share price would increase further.
Post the stake sale, Dilip Piramal and group's shareholding in the company will decrease from 51.73% to 19.73%. The sellers include Dilip Piramal and various entities forming part of the promoter group, such as Kemp and Company Ltd., DGP Securities Ltd., Kiddy Plast Ltd., Piramal Vibhuti Investments Ltd., and Alcon Finance & Investment Ltd.
