Shares of Prataap Snacks made a strong debut on the bourses on Thursday and ended with up to 26% gains.
Shares of Prataap Snacks made a strong debut on the bourses on Thursday and ended with up to 26% gains. The stock listed at Rs 1,250 on the BSE, reflecting a sharp gain of 33.26% from the issue price of Rs 938. During the day, the stock soared 40.41% to Rs 1,317.05. It finally ended the day at Rs 1,178.30, up 25.61%.
On NSE, the stock listed at Rs 1,270, 35.39% above its issue price. However, it lost its initial gains and ended the session at Rs 1,190, 6.30% below its listing price.
The initial public offering (IPO) of Prataap Snacks was subscribed by 47.23 times investors bidding for 17.13 crore shares of the 36.27 lakh shares on offer. The portion set aside for qualified institutional buyers (QIBs) has oversubscribed 76.88 times while the reserved portion of non institutional investors has seen subscription of 101.15 times and retail investors 7.9 times.
Prataap Snacks Limited’s Rs 481.94 crore initial public offer was opened for subscription during September 22 to 26, with a price band of Rs 930 to 938 per share. The initial public offering (IPO) of Prataap Snacks was subscribed by 47.23 times with investors bidding for 17.13 crore shares of the 36.27 lakh shares on offer. On 21 September, Prataap Snacks allotted equity shares worth Rs 143.4 crore at `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.
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. (With PTI inputs)