PE Firms 360 One, Multiples Eye Stake in VIP Industries

Domestic private equity (PE) firms such as Multiples Alternatives and 360 One are in talks to pick up a minority stake in listed luggage and travel accessories maker VIP Industries, three people with knowledge of the development said.

- Varun Sood & Sneha Shah

The stake sale is part of ongoing efforts of the promoter family—the Piramals—to exit the business. An attempt to sell controlling stake in the company fell through last November.

The PE firms will buy around 26% stake in the company, likely triggering an open offer, the people cited above said on the condition of anonymity. "Term sheets have been shared by the prospective investors," one of the persons said. "Finer details of the deals are being discussed."

"Once the company turns around and shows better financial performance, these PE firms are likely to hike their stake in the company, paving the way for the promoters to exit over the medium term," the second person said.

Last year, the company was in advanced talks with global PE firm Advent International to sell controlling stake, Mint had reported. The deal did not go through due to various reasons including valuation mismatch.