VIP Industries: Promoter Group Entities To Offload 32% Stake

VIP Industries Ltd. on Sunday notified the stock exchanges that promoter group entities plan to sell 32% stake in the company to certain private equity investors.

The sellers include promoter Dilip Piramal and various entities forming part of the promoter group — Kemp and Company Ltd., DGP Securities Ltd., Kiddy Plast Ltd., Piramal Vibhuti Investments Ltd. and Alcon Finance & Investment Ltd.

Post the stake, Dilip Piramal and group shareholding in the company will come down to 19.73% stake from 51.73%.

Multiples Private Equity Fund IV, Multiples Private Equity Gift Fund IV, Samvibhag Securities, Mithun Padam Sacheti, and Siddhartha Sacheti were identied as the purchasers in the filing.

The purchasers propose to acquire up to "4,54,46,305 equity shares", or approximately "32% of the total paid-up share capital".

The stake sale will be followed up with an open-offer for the purchase of additional 26% shares, in accordance to a share purchase agreement. This will allow certain purchasers to acquire management control of the company, according to the filing.

Shares of VIP Industries on Friday closed 1.6% higher at Rs 456 apiece on the NSE, compared to a 0.81% decline in the benchmark Nifty 50. The stock, however, is down 4.4% over the past 12 months and by 5.6% on a year-to-date basis.

Among the 11 analysts tracking the stock, four have a 'buy' rating, three recommend 'hold' and four 'sell'. The average of 12-month analysts' price target implies a potential downside of 2%.