Shares of VIP Industries Ltd. slipped 3.72% to Rs 410.35 on Monday, after promoter entities Kiddy Plast Limited and Piramal Vibhuti Investments Limited sold shares worth Rs 343 crore via bulk deals.
According to data, Kiddy Plast sold 10.87 lakh shares of the luggage maker at Rs 388 apiece, amounting to Rs 42.18 crore, while Piramal Vibhuti Investments offloaded 77.52 lakh shares at Rs 388.25 each, worth Rs 301 crore. The combined stake sale took place at nearly a 9% discount to Thursday’s closing price, sparking selling pressure in Monday’s trade.
The stock reacted negatively as bulk deals by promoters are often viewed as a sentiment dampener. The decline comes even as VIP Industries has been attempting to reposition itself in the premium luggage segment amid increasing competition from global and domestic players.
At the current price of Rs 410.35, VIP Industries’ market capitalization stands significantly lower compared to last week’s levels, reflecting investor concerns after the sizable promoter stake sale.