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Indian businessman sells stake in ₹6,800 crore company, says younger generation not interested in running business
Dilip Piramal, Chairman of VIP Industries, said on Monday that the younger generation of his family is not interested in managing the business.
Dilip Piramal, Chairman of VIP Industries, said on Monday that the younger generation of his family is not interested in managing the business. His remarks came a day after the company informed stock exchanges that promoter group entities plan to divest a 32% stake to a group of private equity investors and others.
“We are a family-owned business, and the next generation is not very keen on running it,” Piramal told NDTV Profit.
“In all our 53 years of existence, VIP has been the market leader. But in the last five years, we have been losing market share. Last year, we reported losses in all four quarters," added the business tycoon.
Luggage maker VIP Industries has a market capitalization of ₹6,830 crore, according to financial services website AngelOne. Over the past 52 weeks, the stock has hit a high of ₹589.75 and a low of ₹248.35.
Dilip Piramal on selling VIP stake
According to a CNBC report, Piramal, 75, regrets not selling the business when it had hit a share price of ₹700.
“Two years ago, the share price was ₹700, market cap was ₹10,000 crore, and we got an offer for that price. But my management at that time felt that in six months or in one year, the share price will go up by 50%... unfortunately, that hasn’t happened,” Piramal told CNBC-TV18.
Piramal has now sold a 32% stake in VIP Industries to private equity firm Multiples, Mithun Sancheti and Siddhartha Sancheti, and Samvibhag Securities – marking the end of his 52-year leadership of the company.
The stake will be acquired for ₹1,763 crore, valuing the shares at ₹388 each — around 15% lower than VIP Industries’ closing price on Friday, July 11.
Piramal will retain a 20% stake in the business. He will not remain on the board.
Dilip Piramal’s family and Mukesh Ambani connection
Dilip Piramal has three daughters from two marriages. His first wife was Gita Piramal. They divorced in 2005. The couple had two daughters, Radhika and Aparna.
Later that same year, Dilip Piramal married Shalini Agarwal. They have a daughter named Priyadarshini.
Dilip is the elder brother of Ajay Piramal, whose son Anand Piramal is married to Mukesh Ambani’s daughter, Isha Ambani. Mukesh Ambani is the chairman of Reliance Industries and India's richest man.
