Major Stake Acquisition in Prataap Snacks by Authum Investment & Mahi Madhusudan Kela

Authum Investment & Infrastructure and Mahi Madhusudan Kela are acquiring a 46.85% stake in Prataap Snacks for Rs 846.60 crore. A share purchase agreement has been made with three private equity promoters. An open offer for an additional 26% stake has also been announced.

In a significant development, Authum Investment & Infrastructure and Mahi Madhusudan Kela will be acquiring a 46.85% stake in Prataap Snacks, known for its Yellow Diamond and Rich Feast brands.

The deal, pegged at Rs 846.60 crore, involves a share purchase agreement with three private equity promoters—Peak XV Partners Growth Investments I, Peak XV Partners Growth Investment Holdings II, and Sequoia Capital GFIV Mauritius Investments, who hold stakes of 2.48%, 34.65%, and 9.72% respectively.

An open offer for an additional 26% stake in Prataap Snacks has also been announced, with the acquirers offering Rs 864 per share, totaling Rs 544.17 crore. Despite the open offer, Prataap Snacks will remain a listed entity, with no plans for delisting, as confirmed by an exchange filing.

(With inputs from agencies.)