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 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 IPO is scheduled to open on September 23 and close on September 26. The issue includes a reservation of up to 42,000 equity shares aggregating to Rs 3.93 crore for subscription by eligible employees with discount of Rs 90 per equity share. Bids can be made for a minimum of 15 equity shares and multiples of 15 thereof.
The company, which makes products under the ‘Yellow Diamond’ brand, aims to use the proceedings to expand the capacity of chips by 50% and double that of namkeen, marketing and brand building activities and to retire the debt on its books.
The Sequoia Capital-backed company, which made revenue of R903 crore last fiscal, also plans to enter the sweet snacks category, said managing director and chief executive officer Amit Kumat. 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 equity shares offered through the RHP are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). 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.