VIP Industries' share price jumped more than 11% after a group of private‑equity investors bought about a quarter of the company’s shares.
Key details of the transaction
- Buyers: Multiples Private Equity Fund IV, Multiples Private Equity Gift Fund IV and Samvibhag Securities.
- Shares purchased: 25.55% of the total equity (about 3.7 crore shares).
- Purchase price: ₹388 per share.
- Total amount paid: roughly ₹1,408.29 crore.
Who sold their shares
- DGP Securities, Alcon Finance & Investments, Kiddy Plast, Kemp & Company and Piramal Vibhuti Investments were the sellers.
- Combined, they disposed of 26.07% of the company (about 3.7 crore shares) for around ₹1,436.88 crore.
- After the sale, each of these promoters is left with only about 0.01%–17% of the total shares.
Impact on VIP Industries’ share price
The large purchase lifted the stock to ₹408.05, its highest close since the end of October, with a volume spike that confirmed strong buying interest.
What this means for investors
- The new shareholders are now classified as promoters, giving them a stronger voting position.
- The reduced stake of the original promoters may signal a shift in the company’s strategic direction.
- For retail investors, the price rise suggests confidence in the company’s future, but the usual market risks still apply.
Disclaimer
Remember, this is just an overview of recent events, not a recommendation. Do your own research and consider your risk tolerance before making any investment decisions.