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Prataap Snacks' Rs 482-cr IPO to open for sale next Friday

Shares to be offered at a price band of Rs 930-938 until Sept 26

Press Trust of India  |  Mumbai 

Prataap Snacks' Rs 482-cr IPO to open for sale next Friday

Indore-based snacks maker Prataap Snacks' estimated Rs 482-crore initial public offer (IPO) will open for subscription on September 22.

The issue, with a price band of Rs 930-Rs 938 per equity share, will close on September 26.

The Rs 482-crore issue size includes Rs 200 crore through fresh equity issue and the rest from the offer for sale. It will also offer a discount of Rs 90 per share to eligible employees of the company.

The company, which makes products under the 'Yellow Diamond' brand, aims to use the proceedings to expand the capacity of chips by 50 per cent and double that of namkeen, marketing and brand building activities and to retire the debt on its books.

The Sequoia Capital-backed company, which clocked a revenue of Rs 903 crore last fiscal, also plans to enter the sweet snacks category in a fortnight's time, Managing Director and Chief Executive Officer Amit Kumat told reporters in Mumbai.

Sequoia Capital's stake would reduce to 49 per cent post from 63 per cent at present, while the other three promoters -- Arvind Mehta, Amit Kumat and Apoorva Kumat's shareholding will come down to approximately 24 per cent from around 33-34 per cent at present.

The organised snack category in India is estimated to be Rs 22,000 crore in size and growing at 10-11 per cent. has been clocking a CAGR of over 27 per cent.

Edelweiss, and are managing the issue.

First Published: Fri, September 15 2017. 16:55 IST