Shares of VIP Industries Ltd. will be in the spotlight today, on Monday, July 14, after a major development over the weekend where the promoter group agreed to sell a 32% stake to a consortium of investors, marking a shift in control of the company.
According to the company’s regulatory filing, five promoter entities—Kemp and Company, DGP Securities, Kiddy Plast, Piramal Vibhuti Investments, and Alcon Finance & Investment—signed a share purchase agreement (SPA) on July 13 with new investors including Multiples Private Equity Fund IV, Multiples Private Equity Gift Fund IV, Samvibhag Securities, Mithun Sacheti, and Siddhartha Sacheti.
The transaction involves the sale of about 4.54 crore shares, representing approximately 32% of the company’s paid-up capital, paving the way for the incoming investors to acquire management and control of VIP Industries. This will also trigger an open offer for an additional 26% of the voting share capital, in compliance with SEBI takeover regulations.
A shareholders’ agreement (SHA) was also signed, defining governance rights, board representation, and share transfer arrangements between the outgoing promoters and the incoming investors. Notably, Dilip Piramal, the current promoter, will retain the right to nominate one member to the company’s board.
The new investor group, which includes prominent private equity funds and seasoned industry professionals, is expected to bring strategic direction and fresh capital to the business.
Arpwood Capital acted as the exclusive financial advisor to the sellers for the transaction.
Market participants will track VIP Industries closely in Monday’s session as the change of control and potential open offer could influence the stock price amid expectations of a premium and strategic transformation.
