The initial public offering (IPO) of Prataap Snacks Limited was subscribed 0.42 times on Friday with investors bidding for 15.42 lakh shares of the 36.27 lakh shares on offer.
The initial public offering (IPO) of Prataap Snacks Limited was subscribed 0.42 times on Friday with investors bidding for 15.42 lakh shares of the 36.27 lakh shares on offer. The qualified institutional buyers bid 10.19 lakh shares on the first day of the IPO. High net worth individuals (HNIs) bid for 13,635 shares and retail investors bid for 5.04 lakh shares. On Thursday, Prataap Snacks allotted equity shares worth Rs 143.4 crore at Rs 938 to 15 anchor investors. 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 Limited, which manufactures and markets snacks under the Yellow Diamond brand is planning to raise around Rs 481.94 crore from 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 Rs 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 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 `90 per equity share. The company 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.