This small-cap company that offers its products and services in the household and personal products sector was up by 2 percent after the news came out that its promoters have plans of offloading their stake in the company.
At 2:45 p.m the shares of VIP Industries were trading at Rs. 670 up by 2 percent from its previous day close price and the company’s market capitalization is 9,480 Cr.
As per the reports, the promoters of VIP Industries are considering selling their stake in the company. The Dilip Piramal-led promoter group holds around 51% of VIP Industries, the owner of luggage brands such as VIP, Carlton and Skybags. The market value of VIP Industries is around ₹ 9,480 crore, valuing the promoters’ stake at about ₹4,834 crore.
The deal, including a potential open offer, could be worth as much as $1 billion and see the promoters completely exit the business. The promoters have hired the investment banking team of InCred Capital to manage the sale. The report further added that private equity firms are most likely to be interested in the asset as VIP Industries is larger than Indian peers except Safari Industries.
The company’s revenue has increased by 61.48 percent from 1,289.51 Cr in FY22 to 2082.32 Cr in FY23, accompanied by increasing profits of 66.93 Cr to 152.34 Cr.
The company has reported a return on equity (ROE) of 25.85 percent and return on capital employed (ROCE) of 30.29 percent, this indicates that the company is getting good returns on its equity and making efficient utilisation of the company’s resources.
According to the latest shareholding data available for the June 2023 quarter, the company’s Promoters hold 51.29 percent stake, the Domestic Institutional Investors hold 20.82 percent and the Foreign Institutional Investors (FII) hold 8.95 percent.
VIP Industries is India’s largest luggage manufacturing company which manufactures luggage and travel accessories, catering to the household and personal products segment.
Written by: Bharath K.S
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