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Prataap Snacks IPO: Rs143.40 crore raised from anchor investors

LiveMint logoLiveMint 21-09-2017 Sneh Susmit

Mumbai: Prataap Snacks Ltd which opens its initial public offering (IPO) on Friday raised Rs143.4 crore by allotting shares to institutional investors as part of its anchor book allocation.

Shares were allocated to 15 institutional investors at Rs938 per share, the upper end of the IPO price band of Rs930-938.

Investors that participated in the anchor book allocation include Small Cap World Fund Inc, Fidelity Funds, Goldman Sachs India Ltd, HDFC Trustee Co. Ltd and SBI Life Insurance Co Ltd.

The IPO opens on 22 September and will close on 26 September.

Prataap Snacks makes potato chips and a variety of savouries under the brand name Yellow Diamond. It also plans to expand into confectionaries and health snacks.

The IPO comprises of a fresh issue of Rs200 crore. Proceeds from the fresh issue will be used by the company for debt repayment, funding capital expenditure requirements for setting up new production lines, modernization of existing manufacturing facilities and marketing and brand-building activities.

Prataap Snacks promoters and venture capital investor Sequoia Capital are collectively selling around 3 million shares in the share sale. Sequoia Capital plans to sell around 1.78 million shares, which at the upper end of the price band will fetch it about Rs167 crore.

Sequoia Capital currently holds 63.15% of Prataap Snacks. It has brought Rs265 crore into Prataap Snacks since its first investment in the company in 2011. In June 2016, Aditya Parekh-led private equity firm Faering Capital invested Rs45 crore in the company.

Prataap Snacks has appointed Edelweiss Financial Services Ltd, JM Financial Institutional Securities Ltd and Spark Capital Advisors (India) Pvt. Ltd to manage its public offering.

Earlier this month, Mint reported Prataap Snacks raised Rs50 crore in a pre-IPO round from public markets investor Malabar Investments, which picked up a 2.5% stake in the company.

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