Khaitan & Co recommended at Multity Multity Multity Asset Management Asset Management Fund by about 32 % of participation and control in the VIPs of baggage industries by the Multiple Consortium for Inr 1,763 Crores. Azb & Partners represented the VIP sales promoters led by the Dilip Piramal family. The multiple LED consortium includes Multiples PE Fund IV, Multiples Gift Fund IV, Samvibhag Securities PVT and investors Mithun Padam Sacheti and Siddhartha Sacheti.
The business structure involved the acquisition of a 32 %purchase of shares. Following this acquisition, the Consortium will make an open offer compulsory to public shareholders to purchase an additional fee of 26 % at the same price, potentially increasing their total participation for about 58 percent, which would guarantee them control of the majority on the VIP industries.
This acquisition marks a fundamental moment in the history of Vip Industries, transferring the majority control from the founder family to a private equity consortium with the aim of reviving growth and strengthening its market leadership in the brand luggage segment in IndiaDilip Piramal will return to the control but will maintain a minority share of about 20 percent and the title of emeritus president. Maintains the right to appoint a family member or recommend an independent director to the Council.
Founded in 1968, VIP Industries is the largest and second largest luggage manufacturer in the world, with brands including VIP, Carlton, Aristocrat, Skybags and Caprese.
Despite a legacy of market leadership with over 50 % of market shares, VIP has faced challenges in recent years, including strong competition of brands such as Samsonite and Safari, a drop in the market share and losses reported in exercise 25 due to the intensification of competition and the interruptions relating to pandemic.Dilip Piramal cited a lack of interest from the younger generations in the management of the family business, which also took into consideration the decision to sell a significant participation.
The Khaitan team was led by the partner Shishir Vayttoden and included the partners Abhishek Dadoo and K Aishwarya. The team included the consultant Shashank Patil, Senior Associate Vritika Lakhwani and associated with Gitika Lahiri. The team received assistance from the partner Anisha Chand and from the consultant Soham Banerjee regarding the control of the merger, Councilor Amsruta Joshi on the real estate aspects, the consultant Sishi Ramkrishnan on issues of labor law and partner Nirupam Lodha on issues of intellectual property.
The Azb team was led by the senior partner Anand Shah and partners Kinshuk Jhunjhunwala and Shrram Shah. The team included Senior Aayush Raman associated, associated with Jhanvi Sangani and Kareena Sobti and the employee of the Karan Nair limb.
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