VIP Industries promoters sell 32% stake; buyers to launch open offer for additional 26%

In total, the buyers will acquire up to 4.54 crore shares, amounting to 32 percent of the company’s equity.

The promoters of VIP Industries have agreed to sell a 32% stake in the company to a new group of buyers, who will also launch a mandatory open offer for an additional 26% stake. The deal was officially announced on Sunday evening.

However, the deal value and the open offer price have not been made public yet.

The selling group includes several entities linked to the current promoter family:

DGP Securities – 27.01 percent

Piramal Vibhuti Investments Ltd. – 15.72 percent

Kemp and Company Ltd. – 2.36 percent

Kiddy Plast Ltd. – 2.34 percent

Alcon Finance and Investments Ltd. – 1.98 percent

DGP Enterprises Pvt. Ltd. – 1.38 percent

Dilip Piramal – 0.45 percent

In total, the buyers will acquire up to 4.54 crore shares, amounting to 32 percent of the company’s equity.

As part of the agreement, the new buyers will gain control of the board by nominating a majority of the directors. However, Dilip Piramal will retain limited influence. He will have the right to recommend a candidate, either an independent director or a non-independent executive director from his family, for board appointment.

Additionally, if the promoter group or Piramal decides to sell any remaining shares in the future, the buyers will have the right of first offer, followed by a right of first refusal.

Shares of VIP Industries closed 1.6 percent higher on Friday at Rs 456. The stock has gained around 13 percent over the past month.