Authum Investment & Infrastructure Limited and investor Mahi Madhusudan Kela will buy a significant stake in Pratap Snacks Ltd., which operates the sandwich Yellow Diamond brand for $846.60 crore, according to the company’s BSE filing on Friday, September 27.
The company has entered a share purchase agreement with promoters acquire a 46.85 per cent stake in the company from Peak XV Partners Growth Investments I, Peak XV Partners Growth Investment Holdings II and Sequoia Capital GFIV Mauritius Investments, the three private equity promoters.
Shares of Prataap Snacks Ltd were trading 0.14 per cent lower on $1,052.25 at 2:34 p.m. on Friday, compared to $1,053.75 at the close of the previous market. The company announced the details of the acquisition during pre-market opening hours on Fridays.
According to a Bloomberg report, the stock gained 12 percent, reaching its highest level level in more than seven months after development.
“The acquirer and PAC have entered into a share purchase agreement dated September 26, 2024, with the sellersaccording to which the acquirer has agreed to acquire from the sellers 1.02 million equity shares of the target company for $746 per share of capital for an aggregate consideration of $846.60 crore,” the company said in the exchange filing.
Apart from this, the company has also announced an opening offer acquire a 26 percent share of the company in the market. The acquiring entities made an open offer for 62.98 lakh equity shares, representing a 26 per cent stake in $544 crores at a price of $864 per share, according to the presentation.
What are Prataap snacks?
Prataap Snacks, an Indore-based snack manufacturer, sells chips, dry fruits and chips under the name Yellow Diamond brand. According to news agency PTI, it operates 15 manufacturing facilities and partners with over 5,200 super or sub-distributors, helping it reach over 2.5 million touchpoints in India.
The acquisition comes at a time when competitors such as Bikaji Foods International Ltd. and Mrs Bectors Food Specialties Ltd. have gained more than 70 percent as investors and are betting that consumption data and changing lifestyle patterns will boost light meal consumption in India, according to the Bloomberg report.
The Indian snacks market is expected to double in size to $10.6 billion by 2032, up from nearly $5.1 billion in 2023, the agency reported citing IMARC, a market research firm.
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