Authum Investment & Infrastructure, along with Mahi Madhusudan Kela, will acquire a 46.85% stake in Prataap Snacks, the Indore-based packaged foods company known for its Yellow Diamond snack brand and Rich Feast sweet snacks. The͏͏ deal,͏͏ valued͏͏ at͏͏ INR͏͏ 846.60͏͏ crore,͏͏ involves͏͏ a͏͏ share͏͏ purchase͏͏ agreement͏͏ signed͏͏ on͏͏ Thursday͏͏ to͏͏ acquire͏͏ approximately͏͏ 1.02͏͏ crore͏͏ equity͏͏ shares͏͏ from͏͏ three͏͏ private͏͏ equity͏͏ promoters,͏͏ as͏͏ disclosed͏͏ in͏͏ an͏͏ early͏͏ morning͏͏ filing͏͏ by͏͏ Prataap͏͏ Snacks.
Peak XV Partners Growth Investments I, Peak XV Partners Growth Investment Holdings II, and Sequoia Capital GFIV Mauritius Investments—hold͏͏ stakes͏͏ of͏͏ 2.48%,͏͏ 34.65%,͏͏ and͏͏ 9.72%,͏͏ respectively.
“The͏͏ acquirer͏͏ and͏͏ Persons͏͏ Acting͏͏ in͏͏ Concert͏͏ (PAC)͏͏ have͏͏ signed͏͏ a͏͏ share͏͏ purchase͏͏ agreement͏͏ dated͏͏ September͏͏ 26,͏͏ 2024,͏͏ with͏͏ the͏͏ sellers.͏͏ Under͏͏ this͏͏ agreement,͏͏ the͏͏ acquirer͏͏ will͏͏ purchase͏͏ 1.02͏͏ crore͏͏ equity͏͏ shares͏͏ of͏͏ the͏͏ target͏͏ company͏͏ at͏͏ a͏͏ price͏͏ of͏͏ INR͏͏ 746͏͏ per͏͏ share,͏͏ amounting͏͏ to͏͏ an͏͏ aggregate͏͏ consideration͏͏ of͏͏ INR͏͏ 846.60͏͏ crore,”͏͏ it͏͏ stated.
Additionally,͏͏ the͏͏ company͏͏ has͏͏ announced͏͏ an͏͏ open͏͏ offer,͏͏ triggered͏͏ by͏͏ the͏͏ acquisition͏͏ of͏͏ a͏͏ controlling͏͏ stake,͏͏ to͏͏ purchase͏͏ a͏͏ 26%͏͏ stake͏͏ in͏͏ the͏͏ company͏͏ from͏͏ the͏͏ market.
“Since͏͏ the͏͏ acquirer͏͏ and͏͏ PAC͏͏ have͏͏ reached͏͏ an͏͏ agreement͏͏ to͏͏ acquire͏͏ voting͏͏ rights͏͏ exceeding͏͏ 25%͏͏ of͏͏ the͏͏ equity͏͏ share͏͏ capital͏͏ and͏͏ control͏͏ over͏͏ the͏͏ target͏͏ company…,”͏͏ it͏͏ stated.
In͏͏ the͏͏ open͏͏ offer,͏͏ a͏͏ price͏͏ of͏͏ INR͏͏ 864͏͏ per͏͏ share͏͏ has͏͏ been͏͏ proposed.͏͏ If͏͏ fully͏͏ subscribed,͏͏ the͏͏ open͏͏ offer͏͏ will͏͏ total͏͏ an͏͏ aggregate͏͏ consideration͏͏ of͏͏ INR͏͏ 544.17͏͏ crore.
Prataap͏͏ Snacks͏͏ reached͏͏ a͏͏ peak͏͏ price͏͏ of͏͏ INR͏͏ 1,371.45͏͏ on͏͏ January͏͏ 18,͏͏ 2024.
Continue͏͏ Exploring:͏͏ ITC͏͏ mulls͏͏ 47%͏͏ stake͏͏ acquisition͏͏ in͏͏ Prataap Snacks,͏͏ eyes͏͏ market͏͏ share͏͏ growth
No͏͏ Delisting͏͏ Plans:
Prataap͏͏ Snacks͏͏ will͏͏ continue͏͏ to͏͏ be͏͏ a͏͏ listed͏͏ entity͏͏ after͏͏ the͏͏ open͏͏ offer,͏͏ and͏͏ the͏͏ acquirers͏͏ have͏͏ no͏͏ intention͏͏ of͏͏ delisting͏͏ the͏͏ stock,͏͏ according͏͏ to͏͏ the͏͏ exchange͏͏ filing.
“The͏͏ acquirer͏͏ does͏͏ not͏͏ plan͏͏ to͏͏ delist͏͏ the͏͏ Target͏͏ Company͏͏ as͏͏ a͏͏ result͏͏ of͏͏ this͏͏ open͏͏ offer,”͏͏ it͏͏ stated.
However,͏͏ it͏͏ also͏͏ noted͏͏ that͏͏ the͏͏ open͏͏ offer͏͏ is͏͏ conditional͏͏ and͏͏ dependent͏͏ on͏͏ the͏͏ completion͏͏ of͏͏ the͏͏ share͏͏ purchase͏͏ agreement͏͏ with͏͏ the͏͏ promoters.
“The͏͏ share͏͏ purchase͏͏ agreement͏͏ outlines͏͏ the͏͏ terms͏͏ and͏͏ conditions͏͏ agreed͏͏ upon͏͏ by͏͏ the͏͏ acquirer,͏͏ the͏͏ PAC,͏͏ and͏͏ the͏͏ sellers,͏͏ along͏͏ with͏͏ their͏͏ respective͏͏ rights͏͏ and͏͏ obligations.͏͏ The͏͏ completion͏͏ of͏͏ the͏͏ open͏͏ offer͏͏ is͏͏ a͏͏ condition͏͏ precedent͏͏ to͏͏ the͏͏ underlying͏͏ transaction,”͏͏ it͏͏ stated.
Growth͏͏ and͏͏ Reach:
Founded͏͏ in͏͏ 2003͏͏ in͏͏ Indore,͏͏ Madhya͏͏ Pradesh,͏͏ Prataap͏͏ Snacks͏͏ is͏͏ one͏͏ of͏͏ India’s͏͏ fastest-growing͏͏ snack͏͏ food͏͏ companies.
It͏͏ operates͏͏ 15͏͏ manufacturing͏͏ facilities—eight͏͏ owned͏͏ and͏͏ seven͏͏ contracted—and͏͏ collaborates͏͏ with͏͏ over͏͏ 5,200͏͏ super͏͏ and͏͏ sub-distributors,͏͏ reaching͏͏ 2.5͏͏ million͏͏ touchpoints͏͏ nationwide.
Strong͏͏ Financial͏͏ Performance:
For͏͏ the͏͏ financial͏͏ year͏͏ 2024,͏͏ its͏͏ revenue͏͏ stood͏͏ at͏͏ INR͏͏ 1,617.93͏͏ crore,͏͏ reflecting͏͏ a͏͏ CAGR͏͏ growth͏͏ of͏͏ 14%͏͏ over͏͏ the͏͏ past͏͏ 10͏͏ years.
