Authum Invt hits 5% upper band as board okays stake buy in Prataap Snacks

Authum Investment's board approved the 42.31 per cent acquisition of Prataap Snacks

Authum Investment & Infrastructure share price hit a 5-per cent upper circuit on the BSE in Monday's (September 30) intraday trade. The buying in the stock was sparked after the company's board approved the acquisition of  42.31 per cent stake in Prataap Snacks.

At around 10:12 AM, Authum Investment & Infrastructure share price was up 3.94 per cent at Rs 1,765 per share on the BSE. Prataap Snacks share price, on the other hand, were down 3.65 per cent at Rs 1,007.85 per share. In comparison, the BSE Sensex traded 0.69 per cent lower at 84,977.76 around the same time.

In the past one year, Authum Industries shares have gained 251.8 per cent as against BSE Sensex's rise of 30 per cent.

In a filing, Authum Investment said, "Authum Investment and Infrastructure Ltd has signed a Share Purchase Agreement (SPA) on September 26, 2024, with Mahi Madhusudan Kela (referred to as PAC), for the purchase of a 46.85 per cent stake in Prataap Snacks Ltd."

As per the share purchase agreement, the Sanjay Dangi family-led Authum will acquire 10.2 million shares and Kela 1.1 million shares of Prataap Snacks at Rs 746 apiece for a total outgo of Rs 846 crore. They will also make an open offer to acquire an additional 6.3 million shares at Rs 864 apiece for up to Rs 544 crore.

The acquisition is expected to be completed within six months and the transaction is worth Rs 846.6 crore.

After the completion of the acquisition, Prataap Snacks will become an associate company of Authum Investment.

The acquisition as per Authum Investment aligns with their long term strategy of diversifying their portfolio while investing in sectors that demonstrate both stability and growth potential.

The company will buy stakes from Peak XV Partners Growth Investment Holdings I, Peak XV Partners Growth Investment II, Sequoia Capital GFIV Mauritius Investments.