VIP Industries' stock jumped over 7% on Wednesday after a large block trade moved about 26% of the company’s shares.
What happened?
A block deal involving roughly 3.7 crore shares (about 26% of the total equity) was executed on Wednesday. The trade pushed the share price up to ₹393.5 in the morning session, extending the day's gains even though the stock is down almost 19% year‑to‑date.
Details of the block deal
The buyer and seller were not disclosed immediately. The size of the deal matches the remaining amount that a group of investors, led by Multiples Private Equity, had announced they would buy in a prior open‑offer.
Recent ownership changes at VIP
- In September, promoters sold a 6.2% stake for ₹343 crore via a block deal. Piramal Vibhuti Investments and Kiddy Plast sold 88.4 lakh shares at about ₹388.2 each.
- Multiples Private Equity bought 60 lakh shares for ₹233 crore, while Samvibhag Securities purchased 22 lakh shares for ₹86 crore.
- Back in July, a larger transaction saw Multiples Private Equity Fund IV, its Gift Fund IV, Samvibhag Securities and others acquire a 32% stake from promoter Dilip Piramal, who kept about 20% as a minority holder.
- The acquirers also announced a mandatory open offer for an additional 26% at ₹388 per share, which could cost up to ₹1,437 crore and value the combined 58% transaction at roughly ₹3,200 crore.
Why the stock reacted positively
The market took the new block deal as a sign that ownership is continuing to shift, which many investors view as a potential catalyst for future changes in strategy or governance. Even though the shares have posted significant losses this year, the fresh buying activity gave a short‑term boost.
Bottom line for investors
While the share price rose sharply after the deal, the underlying performance of VIP Industries remains weak for the year. Retail investors should weigh the short‑term price move against the longer‑term fundamentals before making any decisions.
Remember, this is perspective, not a prediction. Do your own research and consider speaking with a qualified financial advisor before investing.