Shares of VIP Industries dropped 4% in early trade on Monday after a significant shift in the company’s ownership structure was announced over the weekend. The promoter group has agreed to sell a 32% stake in the company to a new consortium of investors, marking a major transition in control and leadership.
In a regulatory filing, VIP said that five of its promoter entities—Kemp and Company, DGP Securities, Kiddy Plast, Piramal Vibhuti Investments, and Alcon Finance & Investment—have signed a Share Purchase Agreement (SPA) with a set of new investors on July 13. The incoming group includes Multiples Private Equity Fund IV, Multiples PE Gift Fund IV, Samvibhag Securities, and reputed industry names Mithun Sacheti and Siddhartha Sacheti.
As part of the agreement, the promoters will sell approximately 4.54 crore shares, representing about 32% of VIP’s paid-up capital. The deal will trigger an open offer for an additional 26% stake as per SEBI’s takeover rules, potentially giving the new group a controlling stake in the company.
A Shareholders’ Agreement (SHA) has also been executed, laying down terms for governance, board representation, and future share transfers. Interestingly, Dilip Piramal, the long-time face of VIP Industries, will continue to have a say in the business, retaining the right to nominate one board member.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
