Authum Investment & Infrastructure, in collaboration with Mahi Madhusudan Kela, is set to acquire a significant 46.85% stake in Prataap Snacks, an Indore-based company renowned for its snack brand Yellow Diamond and sweet snacks under Rich Feast. This acquisition is valued at approximately Rs 846.60 crore.
On Thursday, the parties formalized their intentions through a share purchase agreement to obtain the entire 46.85% shareholding, which translates to around 1.02 crore equity shares from three private equity stakeholders as disclosed in an early morning announcement by Prataap Snacks.
The three private equity firms involved—Peak XV Partners Growth Investments I, Peak XV Partners Growth Investment Holdings II, and Sequoia Capital GFIV Mauritius Investments—hold stakes of 2.48%, 34.65%, and 9.72%, respectively.
According to the agreement dated September 26, 2024, the acquirer has committed to purchasing these shares at a price of Rs 746 per share for a total consideration amounting to Rs 846.60 crore.
In addition to this acquisition deal, Prataap Snacks has initiated an open offer aimed at acquiring an additional stake of up to 26% from public shareholders due to the controlling interest being acquired.
This open offer comes as a result of acquiring voting rights exceeding the threshold of 25% within the company’s equity capital structure.
For this open offer, shareholders are being offered Rs 864 per share—a figure that represents a discount of about 16.37% compared to Prataap Snacks’ trading price on BSE earlier today at Rs 1,033.15 apiece; if fully subscribed, this could lead up to total considerations reaching approximately Rs 544.17 crore.
Prataap Snacks reached its peak trading price on January 18th when it hit Rs1 ,371 .45 per share but will continue as a publicly listed entity following this transaction; there are no plans for delisting according to statements made in their exchange filing.
The acquirer has explicitly stated that they do not intend for Prataap Snacks’ stock status on exchanges post-open offer proceedings: “The acquirer does not intend to delist the Target Company pursuant to this Open Offer.”
However , it’s important that completion of both transactions—the purchase agreement with existing promoters and subsequent open offer—is contingent upon certain conditions being met .
Established back in 2003 in Indore , Madhya Pradesh , Prataap Snacks stands out among India’s rapidly expanding snack food enterprises . The company boasts 15 manufacturing facilities (8 owned outright while 7 are contracted) along with partnerships involving over 5 ,200 super/sub-distributors, effectively reaching around 2 .5 million touchpoints nationwide .
For fiscal year 2024, revenue figures were reported at approximately Rs1 ,617 .93 crore, showcasing impressive growth with a compound annual growth rate (CAGR) averaging around 14 percent overthe past decade.
Intern at SMK University
