Promoters of VIP Industries Ltd. are looking to sell an additional 4% stake through a block deal, sources with knowledge of the matter have told CNBC-TV18.According to sources, the book-building process has already been initiated by bankers, and the transaction is likely to be executed soon. Post the proposed block deal, promoters are expected to retain around 16% stake in the company.
The sources added the stake sale process will be the final leg of promoter selling. Earlier this month, the promoters had completed the transfer of the remaining 26% stake to Multiples PE.
CNBC-TV18 has reached out to the promoters of VIP Industries for a response on the proposed transaction, and a reply is awaited.”Getting a PE investor is the best thing that has happened to VIP,” Chairman Dilip Piramal had told CNBC-TV18 back in July. “They typically stay invested for 5–7 years and aim to grow the business 2–3x. That’s the kind of push the company needs now,” he added.
The sources added the stake sale process will be the final leg of promoter selling. Earlier this month, the promoters had completed the transfer of the remaining 26% stake to Multiples PE.
CNBC-TV18 has reached out to the promoters of VIP Industries for a response on the proposed transaction, and a reply is awaited.”Getting a PE investor is the best thing that has happened to VIP,” Chairman Dilip Piramal had told CNBC-TV18 back in July. “They typically stay invested for 5–7 years and aim to grow the business 2–3x. That’s the kind of push the company needs now,” he added.
Shares of VIP Industries ended 0.7% higher on Wednesday at ₹382. The stock has ended the year with losses of 21%. This is the worst year for the stock since 2013, when the stock had declined 24%.
