VIP Industries shares cracked 5% today; here's why
VIP Industries: June was a seasonally strong quarter for the luggage industry. It began well in April due to the holiday season but demand tapered in May due to Indo-Pak border tensions.
- Jul 14, 2025,
- Updated Jul 14, 2025 9:49 AM IST
VIP Industries Ltd shares dropped 5 per cent in Monday’s trade after Dilip Piramal and his family decided to offload a 32 per cent stake in the company to Multiples Private Equity Gift Fund, along with Samvibhag Securities, Mithun Padam Sacheti, Siddhartha Sacheti, and Profitex Shares and Securities.
The transaction triggered an open offer for 26 per cent addition stake purchase (up to 3,70,56,229 shares) by buyers in accordance with the SEBI Takeover Regulations at Rs 388 apiece, which was at 15 per cent discount to Friday's closing price for VIP Industries.
VIP Industries share price
Following the development, the stock fell 5.49 per cent to hit a low of Rs 431.30. With this, the stock has taken its year-to-date fall to 9 per cent. The BSE200 index was up 4 per cent during the same period.
The Piramal family would continue to hold shares in VIP, and Dilip Piramal himself will stay on as Chairman Emeritus, offering guidance while stepping back from day-to-day control. Data showed promoters held 51.73 per cent stake in VIP Industries at the end of March quarter.
"Upon completion of the transaction, control of the company will be transferred to Multiples Private Equity while Dilip Piramal and Family will continue to be shareholders in the Company. Mr. Dilip Piramal will be Chairman Emeritus," VIP Industries said in a BSE filing.
The transaction is subject to regulatory approvals, including from the Competition Commission of India, and will proceed under the framework of SEBI’s rules.
VIP Industries Q1 results preview June was a seasonally strong quarter for the luggage industry. It began well in April due to the holiday season but demand tapered in May due to Indo-Pak border tensions affecting travel sentiment. June, however, saw demand recovering, particularly in backpacks, but luggage was sluggish, Axis Securities noted.
"Overall, the segment continues to be hit by heavy discounting, though it is likely to stabilize somewhat in 2-3 quarters. VIP is slated for flat YoY revenue growth with 3-4 per cent EBITDA margins (Q1 FY25: ~7.7%)," Anand Rathi said in its preview note. This brokerage expected a loss of Rs 13.40 crore in Q1.
VIP Industries Ltd shares dropped 5 per cent in Monday’s trade after Dilip Piramal and his family decided to offload a 32 per cent stake in the company to Multiples Private Equity Gift Fund, along with Samvibhag Securities, Mithun Padam Sacheti, Siddhartha Sacheti, and Profitex Shares and Securities.
The transaction triggered an open offer for 26 per cent addition stake purchase (up to 3,70,56,229 shares) by buyers in accordance with the SEBI Takeover Regulations at Rs 388 apiece, which was at 15 per cent discount to Friday's closing price for VIP Industries.
VIP Industries share price
Following the development, the stock fell 5.49 per cent to hit a low of Rs 431.30. With this, the stock has taken its year-to-date fall to 9 per cent. The BSE200 index was up 4 per cent during the same period.
The Piramal family would continue to hold shares in VIP, and Dilip Piramal himself will stay on as Chairman Emeritus, offering guidance while stepping back from day-to-day control. Data showed promoters held 51.73 per cent stake in VIP Industries at the end of March quarter.
"Upon completion of the transaction, control of the company will be transferred to Multiples Private Equity while Dilip Piramal and Family will continue to be shareholders in the Company. Mr. Dilip Piramal will be Chairman Emeritus," VIP Industries said in a BSE filing.
The transaction is subject to regulatory approvals, including from the Competition Commission of India, and will proceed under the framework of SEBI’s rules.
VIP Industries Q1 results preview June was a seasonally strong quarter for the luggage industry. It began well in April due to the holiday season but demand tapered in May due to Indo-Pak border tensions affecting travel sentiment. June, however, saw demand recovering, particularly in backpacks, but luggage was sluggish, Axis Securities noted.
"Overall, the segment continues to be hit by heavy discounting, though it is likely to stabilize somewhat in 2-3 quarters. VIP is slated for flat YoY revenue growth with 3-4 per cent EBITDA margins (Q1 FY25: ~7.7%)," Anand Rathi said in its preview note. This brokerage expected a loss of Rs 13.40 crore in Q1.