Shares of Prataap Snacks fell as much as 2.76 per cent to hit an intraday low of Rs 1,024.70 after the company informed the bourses that Authum Investment and Mahi Madhusudan Kela acquired a 46.85 per cent stake in the company, triggering a mandatory open offer. The stock came under selling pressure as the open offer price of Rs 864 is at an 18 per cent discount to its previous close of 1,053.75.
As part of the open offer, Authum Investment and Mahi Madhusudan Kela will acquire up to 62,98,351 shares representing 26 per cent stake in the company at Rs 864 per share, amounting to a total consideration of Rs 544 crore, it said. JM Financial, the administrator. to the open offer he said.
The share purchase agreement was signed at Rs 746 per share at a 30 per cent discount to Thursday’s closing price.
Prataap Snacks disclosed the deal to the stock exchanges on September 26, which will result in the company becoming an associate of Authum Investment (AIIL).
AIIL is acquiring stake in Prataap Snacks from several private equity investors including Peak XV Partners Growth Investment Holdings I, Peak XV Partners Growth Investment II and Sequoia Capital GFIV Mauritius Investments. After the transaction, these sellers will no longer be part of the company’s promoter group.
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