VIP Industries promoters in talks to sell stake: Exclusive

Promoters of VIP Industries are in talks to sell stake in the company, sources with knowledge of the matter told CNBC-TV18.Leading private equity investors including Multiples PE are the likely contenders to acquire the promoter stake.

In case a deal materialises, it could trigger an open offer for minority shareholders.

CNBC-TV18 has reached out to both VIP Industries and Multiples PE, and is awaiting a response on the same.
Promoters of VIP Industries, who currently own a 51.7% stake in the company, had earlier alluded to exploring selling their stake due to a lack of succession.Among the public shareholders, India’s Mutual Funds had a 11.12% stake in the company at the end of the March quarter, led predominantly by Tata Mutual Fund and SBI Flexicap Fund.

Foreign portfolio investors had a 7.68% stake in the company at the end of the March quarter.

The company also has 1.34 lakh small retail shareholders, or those with an authorised share capital of up to ₹2 lakh, own a 19.4% stake in the company.

Shares of VIP Industries are trading 3.4% higher at ₹424.25. The stock has risen over 12% in the last one month.