Prataap Snacks Rs 482 crore IPO (initial public offer) which opened on September 22, was over-subscribed 1.17 times on the second day of the three-day bidding process on Monday. It received bids for 78,79,800 shares against 36,27,518 shares on offer. The IPO was subscribed 2.17 times by the end of day two.
The shares reserved for QIB (qualified institutional buyers) was subscribed 3.91 times. The portion set aside for NII (non-institutional investors) was subscribed 0.1 times while the shares reserved for retail investors got subscribed 2.11 times. The quantum reserved for employees category was subscribed 0.55 times.
Indore-based snacks maker Prataap Snacks’ estimated Rs 482-crore initial public offer (IPO) opened for subscription on September 22. The issue, with a price band of Rs 930-Rs 938 per equity share, will close on September 26. The Rs 482-crore issue size includes Rs 200 crore through fresh equity issue and the rest from Offer for Sale. The company expects to raise Rs 250 crore from a fresh issue of equity shares.
Angel Broking had kept a neutral rating to the company’s IPO given the high valuation and the low profitability, saying that the company will need to show remarkable improvement in profitability to justify this high valuation.
Prataap Snacks is a Sequoia Capital-backed company, which clocked a revenue of Rs 903 crore last fiscal. 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.