VIP Industries shares in focus as Piramal family to sell 32% stake, trigger open offer

1) Shares of VIP Industries Ltd will be in focus in trade on Monday, July 14 as the promoters, Dilip Piramal and family, have entered into a definitive agreement with a group of sellers to offload 32 percent in the firm. 2) Multiples Private Equity Fund IV, Multiples Private Equity Gift Fund IV, Samvibhag Securities Pvt. Ltd., along with Mithun and Siddhartha Sancheti, have collectively agreed to acquire a 32 percent stake in VIP Industries. The transaction was officially announced on Sunday evening. 3) Further, the transaction will trigger an open offer in accordance with the SEBI Takeover Regulations. In addition to the 32 percent stake, the buyers will launch a mandatory open offer to purchase up to another 26 percent in the company. 4) The 32 percent stake will be acquired for Rs 1,763 crore at Rs 388 per share, a 15 percent discount to VIP Industries’ closing price on Friday. The open offer for the additional 26 percent will cost Rs 1,437 crore, bringing the total deal size for a 58 percent stake to Rs 3,200 crore. 5) The deal is being done at discount to market price and hence the stock is expected to be under pressure. 6) All this is for information. 7) This is not a buy/sell recommendation. Thank you, Technofunda24