VIP Industries Shares Jump 14%, 26% Stake Sold In Major Block Deal, Market Reacts Positively

Mumbai: VIP Industries saw sudden activity in its shares on Wednesday, with the stock rising over 7 percent in early trade. This surge came after a major block deal in which about 26 percent of the company’s shares, roughly 3.7 crore shares, were traded. The deal highlighted ongoing changes in the company’s ownership structure.

Details of the Block Deal

The recent block deal involved 3.7 crore shares, amounting to approximately 26 percent of the company’s stake. The names of buyers and sellers have not yet been publicly disclosed. Experts suggest the deal matches a previously announced open offer, likely part of the ownership transfer process led by Multiples Private Equity and its consortium partners.

Previous Ownership Changes

In recent months, VIP Industries has seen multiple stake transactions. In September, promoters sold 6.2 percent of their stake through a block deal. Earlier in July, Multiples Private Equity Fund IV, Gift Fund IV, Samvibhag Securities, and promoter family members acquired 32 percent of the promoter group’s shares.

Promoter Dilip Piramal sold his controlling stake in these deals but retained roughly 20 percent ownership. An open offer for 26 percent stake was declared at Rs 388 per share, valuing the transaction at about Rs 1,437 crore and placing the company’s valuation around Rs 3,200 crore.

Market Reaction and Investor Outlook

The market responded positively to the ownership changes, reflected in the sharp share price jump. Despite this, the stock remains under pressure on an annual basis. Investors are now closely watching how the new shareholders plan to influence company strategy and any further management changes.

About VIP Industries

VIP Industries Ltd, established in 1971 and headquartered in Mumbai, is India’s largest luggage manufacturer. The company produces a range of products including luggage, backpacks, handbags, trolleys, and travel accessories. It has introduced innovations in India like the 4-wheel trolley, Tech Series with proximity indicators, and laptop-compatible Workation collections.

Disclaimer: The information provided is for general purposes only and does not constitute financial advice. Investors should conduct their own research or consult a certified financial advisor before making investment decisions.