VIP Industries shares can see strong action as soon as the market opens on Monday, July 15. The reason for this is the information about an important deal given by the company to the exchange. It states that 32% stake in the company is going to be sold.
Which investors have dealt?
Multiples Private Equity Fund IV, Multiples Private Equity Gift Fund IV, Samvibhag Securities Pvt. Ltd., Mithun Sancheti and Siddhartha Sancheti- These five investors have made a deal to buy this large stake in VIP Industries. This part is being purchased from some companies of the current promoter group.
After this deal, these investors will also bring mandatory open offers for the company and up to 26% share. However, it is not yet clear at what cost this stake will be purchased.
Who is selling stake?
Under this deal, seven institutions of the company’s promoter group are selling share. These seven have about 51.24% stake in VIP Industries, of which 32% are now being sold under the new deal. (See table)
What will buyers get?
Under the deal, buyers will get 4.54 crore shares in the company, which is about 32% of the total equity. After this deal, they will get the right to nominate most directors in the board.
In addition, Dilip Piramal will have the right to recommend appointing his wife, descendants or any independent director as Non-Independent Executive Director from the Nomination and Removing Committee.
VIP Industries shares
VIP Industries shares closed at ₹ 456 with a gain of 1.6% on Friday. In the last 1 month, the stock has gained 12.72%. At the same time, this stock has climbed more than 7% in 6 months. However, in 1 year it is still 4% below. The company’s market cap is around ₹ 6,480 crore.
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