
VIP Industries, whose shares are down 6 per cent in 2025 so far, is in focus on Monday morning after Dilip Piramal and family announced a major stake sale that will shift control of the luggage giant to private equity firm Multiples.
Piramals have signed a definitive agreement to sell up to 32 per cent of their stake to the Multiples consortium. The transaction, once completed will trigger an open offer under SEBI’s Takeover Regulations, marking a formal transition of control, VIP Industries said in a stock exchange filing.
VIP Industries open offer, return
In a separate press release, VIP Industries said the acquirers have announced an open offer for acquisition of up to 3,70,56,229 fully paid-up equity shares of face value of Rs 2 each from the public shareholders of the target company, representing 26 per cent of the expanded share capital, at a price of Rs 388 apiece aggregating to total consideration of up to Rs 1,437.78 crore (assuming full acceptance) payable in cash.
This is at a 14.98 per cent discount to Friday's closing price of Rs 456.40.
VIP Industries shares have delivered 70 per cent return in the past five years against 159 per cent jump in the BSE500 during the same period.
“We are pleased to welcome Multiples consortium as strategic partners in the company,” Dilip Piramal said. “This marks an important step toward reviving VIP’s strong legacy and helping it regain its foothold in the Indian luggage market, where it has struggled in recent years,” he added.
Dilip Piramal to be Chairman Emeritus
The Piramal family will continue to hold shares in VIP, and Dilip Piramal himself will stay on as Chairman Emeritus, offering guidance while stepping back from day-to-day control. "Upon completion of the transaction, control of the company will be transferred to Multiples Private Equity while Dilip Piramal and Family will continue to be shareholders in the Company. Mr. Dilip Piramal will be Chairman Emeritus," VIP Industries said in a BSE filing.
On the other side of this strategic alliance stands Renuka Ramnath, the dynamic Founder and CEO of Multiples Alternate Asset Management. Sharing her vision, she said, “Multiples is excited to lead the ownership transition of this very strong legacy business. We aim to build on its rich heritage and unlock the next phase of growth.”
The transaction is subject to regulatory approvals, including from the Competition Commission of India, and will proceed under the framework of SEBI’s rules.
A team of advisors facilitated the deal. Arpwood Capital served as the exclusive financial advisor to the Sellers, while JM Financial would be managing the open offer. Legal guidance came from AZB & Partners for the sellers, Khaitan & Company for Multiples, and Anagram Partners for the consortium members.
VIP Industries journey
VIP Industries began its journey in 1971 with the launch of its first suitcase. Over the years, VIP has become Asia’s largest and the world’s second-largest luggage maker, selling over 100 million pieces across 45 countries. It has more than 10,000 points of sale and 8,000 employees.
VIP Industries' brand portfolio features leading names like VIP, Skybags, Carlton, Aristocrat, and Caprese. The company has continuously evolved with the changing preferences of discerning travelers. Its products enjoy a strong presence across India, the Middle East, the UK, and select regions in Africa and Southeast Asia.