Authum Investment, Mahi Madhusudan Kela to acquire 46.85% stake in Prataap Snacks

Authum Investment & Infrastructure and Mahi Madhusudan Kela will acquire a 46.85 per cent stake in Prataap Snacks, which operates the snack brand Yellow Diamond and sweet snacks brand Rich Feast. The company has entered into a share purchase agreement with the promoters to acquire 46.85 per cent share in a Rs 846.60 crore deal from its three Private Equity promoters, according to an early morning filing.

The promoters — Peak XV Partners Growth Investments I, Peak XV Partners Growth Investment Holdings II and Sequoia Capital GFIV Mauritius Investments hold stakes of 2.48 per cent, 34.65 per cent, and 9.72 per cent, respectively.

“The acquirer and PAC have entered into a share purchase agreement dated September 26, 2024, with the sellers, pursuant to which the acquirer has agreed to acquire from the sellers 1.02 crore equity shares of the target company at a price of Rs 746 per equity share for an aggregate consideration of Rs 846.60 crore,” it said.

Besides the company has also announced an open offer, triggered by the acquisition of a controlling stake, to acquire a 26 per cent stake in the company from the market.

The acquirers have offered a price of Rs 864 per offer share aggregating to a total consideration of Rs 544.17 crore.

The offer price is 18.31 per cent lower than Rs 1,057.70, the price at which Prataap Snacks was trading early this morning. Prataap Snacks’ highest price was at Rs 1,371.45 on January 18, 2024. Prataap Snacks will remain a listed entity post the open offer and the acquirers do not intend to de-list the stock, the exchange filing stated.

Established in 2003 in Indore, Madhya Pradesh, Prataap Snacks is amongst India’s fastest-growing snack food companies.

It operates 15 manufacturing facilities (8 owned and 7 contracted) and partners with over 5,200 super/sub-distributors, reaching 2.5 million touchpoints across the country.

For the financial year 2024, its revenue was at Rs 1,617.93 crore. It has a CAGR growth of 14 per cent in the last 10 years.