Mumbai: VIP Industries has approved a proposal to raise up to Rs 500 crore during 2026-27 as the luggage maker looks to accelerate growth and strengthen operations.
The company’s board cleared the proposal at its meeting on Friday, September 18. The fundraising may be completed in one or more tranches, subject to necessary regulatory and shareholder approvals.
Multiple Fundraising Routes
VIP Industries said it may issue equity shares with a face value of Rs 2 each, debt securities, convertible securities, preference shares, warrants or depository receipts. The company may also explore foreign currency convertible bonds and other eligible financial instruments.
The fundraising could be undertaken through a public issue, rights issue, qualified institutions placement, preferential issue or debt issue. A combination of these routes may also be considered, depending on market conditions and applicable laws.
The final structure, pricing and timing of the issue have not yet been disclosed. Any premium fixed on the securities will be included within the overall fundraising limit of Rs 500 crore.
Growth And Working Capital Focus
The luggage maker said the proposed capital raise would support its ongoing growth initiatives and meet working capital requirements. It will also help the company enhance capabilities required for long-term value creation.
VIP Industries said it has returned to the growth path after several quarters. The planned investment is expected to reinforce its market leadership and help it capture emerging opportunities across the luggage and wider travel ecosystem.
Approvals Still Required
The proposal remains subject to statutory, regulatory, shareholder and stock exchange approvals, along with any other permissions required under applicable laws.
The board meeting began at 2 pm and concluded at 3.30 pm. The company informed both the BSE and the National Stock Exchange about the decision under Regulation 30 of SEBI’s listing rules.
Further details on the chosen fundraising route, issue size for each tranche, pricing and investor participation are expected after the company completes the required approval process.
