Prataap Snacks share price: Shares of Prataap Snacks on Thursday skyrocketed 20% to a high of Rs 1,288.20 on the BSE after the company announced the acquisition of Gujarat's leading snacks food company Avadh Snacks Private Limited.
Prataap Snacks share price: Shares of Prataap Snacks on Thursday skyrocketed 20% to a high of Rs 1,288.20 on the BSE after the company announced the acquisition of Gujarat’s leading snacks food company Avadh Snacks Private Limited. Snack food start-up Prataap Snacks on Wednesday said it has agreed to acquire 80% equity stake for a consideration of Rs 148 crore through a combination of primary and secondary investment. On the National Stock Exchange, Prataap Snacks shares surged by 19.99% to a high of Rs 1,314.95 per share.
In a regulatory filing to the BSE, snack making company Prataap Snacks said the company’s board at its meeting held on August 22 has approved strategic investment in Avadh Snacks by acquisition of 76.88% of the share capital of the Avadh Snacks from its existing shareholders. The company said it will also do subsequent equity investment of upto 3.12% of the share capital of the Avadh Snacks post completion of the above acquisition. “The company on August 22, 2018 has entered into a share purchase agreement and shareholders’ agreement for the said transaction,” the filing said.
Prataap Snacks Ltd offers multiple variants of products across categories of potato chips, extruded snacks, namkeen (traditional Indian snacks) under the Yellow Diamond brand. Avadh Snacks Pvt Ltd is engaged in the manufacturing and selling of branded packaged snacks under brand name “Avodh” and has a strong presence in the state of Gujarat and now expanding to Maharashtra and Rajasthan., Prataap Snacks said in a statement on Wednesday. “This marks the entry of Prataap Snacks into India’s largest snacks market – Gujarat,” the statement said.