The initial public offering (IPO) of Prataap Snacks was subscribed 2.17 times on the second day with investors bidding for 78.79 lakh shares of the 36.27 lakh shares on offer. The qualified institutional buyers bid 40.16 lakh shares on the first day of the IPO. High Net worth Individuals (HNIs) bid for 78,105 shares and retail investors bid for 22,965 shares. On September 21, Prataap Snacks allotted equity shares worth Rs 143.4 crore at Rs 938 to 15 anchor investors. To name a few, Fidelity Funds, Goldman Sachs India, HDFC Trustee Company, SBI FMCG Fund, ICICI Prudential Value Fund Series, HDFC Standard Life Insurance, DSP BlackRock Equity Savings Fund and SBI Life Insurance are among the international and domestic anchor investors.
Prataap Snacks, which manufactures and markets snacks under the Yellow Diamond brand is planning to raise around Rs 481.94 crore from its initial price offering (IPO). The Rs 481.94-crore issue size includes Rs 200 crore through fresh equity issue and the rest Rs 281.94 crore from offer for sale. The company has set a price band of Rs 930 to 938 per share for its IPO and when calculated at the upper band of the issue price the company will be valued at around Rs 2,199.89 crore.
The Sequoia Capital-backed company, which made revenue of Rs 903 crore last fiscal, also plans to enter the sweet snacks category. Sequoia Capital’s stake would reduce to 49% post IPO from 63% at present, while the other three promoters Arvind Mehta, Amit Kumat and Apoorva Kumat’s shareholding will come down to approximately 24 % from around 33-34 % at present. The company’s product portfolio includes extruded snacks, chips and namkeen. According to a report by Frost and Sullivan, Prataap Snacks is one of the top six Indian snack food companies in terms of revenues in 2016, and among the fastest growing companies in the Indian organized snack market between 2010 and 2016.