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Prataap Snacks’ Rs482 crore IPO begins on 22 September

LiveMint logoLiveMint 15-09-2017 PTI

Mumbai: Indore-based snacks maker Prataap Snacks’ estimated Rs482 crore initial public offer (IPO) will open for subscription on 22 September.

The issue, with a price band of Rs930-Rs 938 per equity share, will close on 26 September. The Rs482 crore issue size includes Rs200 crore through fresh equity issue and the rest from offer for sale. It will also offer a discount of Rs90 per share to eligible employees of the company.

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 clocked a revenue of Rs903 crore last fiscal, also plans to enter the sweet snacks category in a fortnight’s time, managing director and chief executive officer Amit Kumat said.

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 organized snack category in India is estimated to be Rs22,000 crore in size and growing at 10-11%. Prataap Snacks has been clocking a CAGR of over 27%. Edelweiss, JM Financial and Spark Capital are managing the issue.

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