“I Regret Not Selling Earlier”: Chairman Slams Management Over Missed Opportunity To Offload Company Stakes | Economy News
New Delhi: Dilip Piramal, Chairman of VIP Industries, said on Monday that his family’s younger generation isn’t interested in running the business. This came right after the company told stock exchanges that promoter group entities are planning to sell a 32 percent 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,” he said.
VIP Industries, the well-known luggage maker, currently has a market capitalization of about Rs 6,830 crore, as per AngelOne. Over the last year, the stock’s highest price was Rs 589.75 and its lowest was Rs 248.35.
Speaking to CNBC, Piramal, who is 75, shared some regret about not selling the business when its share price peaked.
“Two years ago, the share price was Rs 700, market cap was Rs 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 percent… unfortunately, that hasn’t happened,” Piramal told CNBC-TV18.
Now, Piramal has sold a 32 percent stake in VIP Industries to Multiples, a private equity firm, along with Mithun Sancheti, Siddhartha Sancheti, and Samvibhag Securities. This marks the end of his 52 years as the company’s leader.
The stake is being bought for Rs 1,763 crore, valuing the shares at Rs 388 each, around 15 percent lower than VIP Industries’ closing price on Friday, July 11.
Piramal will still own a 20 percent stake in the company but won’t be on the board anymore.
Dilip Piramal has three daughters from two marriages. His first wife was Gita Piramal, whom he divorced in 2005. They have two daughters, Radhika and Aparna. Later in 2005, Dilip Piramal married Shalini Agarwal, and they have a daughter named Priyadarshini.
Dilip is also the elder brother of Ajay Piramal. Ajay’s son Anand Piramal is married to Mukesh Ambani’s daughter, Isha Ambani. Mukesh Ambani is the chairman of Reliance Industries and the richest man in India.
