VIP Industries Shares Surge Over 10% From Day’s Low After 32% Stake Sale – What’s Driving The Surge?

Shares of VIP Industries, the luggage and travel products, ended 5% up from the opening price after falling almost 6%. The drop was after news broke that Dilip Piramal and his family agreed to sell up to 32% of their stake to Multiples Private Equity and its partners. However, the stock has rebounded over 10% from today's low closing at Rs 480.95.

Share Price Movement:

VIP Industries shares closed at Rs 480.95 on the National Stock Exchange (NSE), up Rs 24.40 or 5.35%. The stock opened at Rs 434.95, lower than the previous day's closing price of Rs 456.55. It dropped sharply by nearly 6% during the day, hitting an intraday low of Rs 431.10. However, the stock rebounded strongly, rising about 10% from the day's low to reach Rs 481.40. VIP Industries currently has a market capitalisation of Rs 6,820 crore.

Why the Fall & Rise in VIP Industries?

The Piramal family, which owns a majority stake in VIP Industries, has agreed to sell 32% of the company to a group led by Multiples Private Equity. The deal, valued at Rs 1,763 crore, prices the shares at Rs 388 each, around 15% lower than VIP's closing price last Friday.

The agreement was signed over the weekend and includes other buyers like Multiples PE Gift Fund IV, Samvibhag Securities Pvt. Ltd., and individual investors Mithun Padam Sacheti and Siddhartha Sacheti. Promoter entities such as Kemp and Company Ltd, DGP Securities Ltd, Kiddy Plast Ltd, Piramal Vibhuti Investments Ltd, and Alcon Finance & Investment Ltd are part of the share sale agreement.

As of March 2025, the Piramal family held a 51.73% stake in VIP Industries. After the deal, control of the company will shift to the Multiples-led consortium. However, Dilip Piramal will continue to be associated with the company as Chairman Emeritus, stepping away from day-to-day operations but staying involved in strategic matters.

Open offer valuation and impact

According to the exchange filing report, Multiples Private Equity, along with its partners and other investors, has announced an open offer to buy up to 3.7 crore shares (26%) of VIP Industries from public shareholders at Rs 388 per share. The total offer value is around Rs 1,437.78 crore, and the offer follows SEBI's takeover rules as this deal qualifies for a mandatory open offer.

Since this price is much lower than the current market rate, it may have affected investor confidence and led to the sharp fall in the stock.

VIP Industries Share Price Outlook

"VIP Industries has bounced off its short-term moving averages and is now making fresh highs, indicating that fresh momentum is building up strongly above the 480 zone. The price action is supported by high trading volumes, clearly pointing to strong institutional participation - a healthy sign for trend continuation.
With this setup, the stock looks well-positioned to maintain its upward trajectory in the near term. We believe that Vipind has the potential to test the 600 mark initially, provided market sentiment remains supportive and volumes continue to hold up," said Anshul Jain, Head of Research at Lakshmishree Securities.

VIP Industries share performance

VIP Industries' share price has gone up by 16% in 1 week and gained 19% in the last 1 month. Over the last six months, the stock is up nearly 11%. However, it has dropped 17% in last 2 years and 23% in last 3 years. The shares are marginally down 0.35% so far in 2025. The highest price in the last 52 weeks was Rs 589.95, while the lowest was Rs 248.55.

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