Exciting Acquisition News: Authum & Mahi Kela Secure Major 46.85% Stake in Prataap Snacks for Rs 846.6 Cr | Transformative Company Update

Authum Investment & Mahi Madhusudan Kela to Buy 46.85% Stake in Prataap Snacks for Rs 846.6 Crore

Authum Investment & Infrastructure, along with Mahi Madhusudan Kela, has signed a share purchase agreement to acquire a 46.85% stake in Prataap Snacks, the Indore-based company renowned for its Yellow Diamond snacks and Rich Feast sweet snacks. The acquisition is valued at Rs 846.60 crore. The sellers include three private equity promoters: Peak XV Partners Growth Investments I (2.48%), Peak XV Partners Growth Investment Holdings II (34.65%), and Sequoia Capital GFIV Mauritius Investments (9.72%).

The acquirers agreed to purchase approximately 1.02 crore equity shares at Rs 746 each. Additionally, an open offer has been announced to acquire a further 26% stake from the market at Rs 864 per share, potentially aggregating to Rs 544.17 crore if fully subscribed. Currently, Prataap Snacks shares are trading at Rs 1,033.15 on the BSE.

Despite the share acquisition and open offer, Authum and Kela do not plan to delist Prataap Snacks. The open offer is conditional on completing the share purchase agreement with the promoters, setting the terms and obligations for all parties involved.

Founded in 2003, Prataap Snacks boasts 15 manufacturing facilities and a vast distribution network, reaching 2.5 million touchpoints nationwide. For the financial year 2024, the company reported revenues of Rs 1,617.93 crore, sustaining a 14% compound annual growth rate over the past decade.

Original Story https://www.business-standard.com/companies/news/authum-mahi-kela-to-acquire-46-85-stake-in-prataap-snacks-for-rs-846-6-cr-124092700673_1.html
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