Home Food Prataap Snacks’ Rs 482-cr IPO to open for subscription on Sep 22

Prataap Snacks’ Rs 482-cr IPO to open for subscription on Sep 22

By  
SHARE

, a homegrown snacks maker based out of Indore will 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.

Prataap Snacks' Rs 482-cr IPO to open for subscription on Sep 22
The company, which makes potato chips, namkeen and snacks under the 'Yellow Diamond' brand, aims to use the proceedings to expand the capacity of chips by 50 per cent and double that of namkee

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

The company, which makes potato chips, namkeen and snacks under the ‘’ 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.

Yellow Diamond has recently signed on superstar Salman Khanas its brand ambassador.

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.

Sequoia Capital’s stake would reduce to 49 per cent post IPO 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. Prataap Snacks has been clocking a CAGR of over 27 per cent as per a PTI report.