VIP Industries revives sale talks
Subscribe to enjoy similar stories. Global private equity firm Advent International is eyeing a controlling stake in listed luggage and travel accessories maker VIP Industries, three people with knowledge of the development said. This marks a revival of sale talks after almost a year when the Dilip Piramal-led promoter group first decided to pare stake.
“The deal has been revived, and Advent is the front runner," the first person cited above said. The second person said that the talks were not yet conclusive and could fall apart. “The entire promoter stake is up for sale," the second person added.
The proposed stake sale, if it goes through, will also trigger an open offer as per the regulatory guidelines. All three people cited above spoke on condition of anonymity. Mint was the first to report last October of the promoter group’s plans to sell controlling stake in the luggage maker, which owns brands such as VIP, Carlton and Skybags.
The thought of a sale was triggered by the lack of a succession plan with the next generation of the promoter family unlikely to continue with the business. Also read | How VIP is trying to shed its baggage The promoters own 51.74% of the company as of the quarter ended September 2024, data from BSE showed. The rest is owned by retail and institutional investors.
As of Tuesday’s close, the market value of VIP Industries was around ₹6,531.91 crore, valuing the promoters’ stake at about ₹3,379 crore. “The deal is likely to be at a 10-15% premium to the market price," the second person cited above said. In the past 12 months, the stock has slid by almost 25.7%, data on exchanges shows.
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