The shares of a company engaged in the manufacturing and marketing of luggage, bags, and accessories rose by up to 6% after reports emerged that its promoters are in talks to sell their stake.
With a market capitalization of Rs 6,611 crore, the share price of VIP Industries Ltd was trading up by 6% to make an intraday high of Rs 474.60 per share from its previous closing price of Rs 448.75 per share.
What’s the News
VIP Industries is reportedly exploring a potential stake sale by its promoters, who currently hold 51.7% in the company. While the exact size of the stake under discussion is yet to be confirmed, leading private equity investors, including Multiples PE, are said to be in early talks. The promoters have previously indicated a willingness to explore a sale due to succession planning challenges.
If a deal materialises, it could potentially trigger an open offer for minority shareholders. As of the March 2025 quarter, mutual funds held an 11.12% stake, led by Tata Mutual Fund and SBI Flexicap Fund, while foreign portfolio investors (FPIs) owned 7.68% of the company.
About the Company
VIP Industries Limited is one of the world’s leading manufacturers and retailers of luggage, backpacks, and handbags, and holds the top spot in India’s organised luggage market. Headquartered in Mumbai, the company has a strong global presence, supplying products to over 45 countries.
VIP operates across multiple luggage categories at various price points, backed by a powerful brand portfolio, 10 in-house manufacturing units in India and Bangladesh, and a wide distribution network of around 14,000 points of sale across 1,400 towns.
With a focus on innovation, quality, and international design, the company continues to redefine travel gear. VIP’s operations are supported by a committed team of over 8,400 employees.
The company reported a revenue of Rs 2,178 crore in FY25, down by 3% from its FY24 revenue of Rs 2,245 crore. Coming to its profitability, the company reported a net loss of Rs 69 crore in FY25 from a Rs 54 crore net profit in FY24.
Written By Rohan Pandey
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