Authum Investment & Infrastructure to Acquire Major Stake in Prataap Snacks

Authum Investment & Infrastructure and Mahi Madhusudan Kela will acquire a 46.85% stake in Prataap Snacks through an Rs 846.60 crore deal. The acquisition involves purchasing equity shares from private equity promoters and initiating an open offer for a 26% stake. Prataap Snacks will remain listed post-offer.

Authum Investment & Infrastructure and Mahi Madhusudan Kela are set to acquire a significant 46.85% stake in Prataap Snacks, the company behind the snack brand Yellow Diamond and sweet snacks brand Rich Feast.

The transaction, valued at Rs 846.60 crore, involves purchasing shares from three Private Equity promoters—Peak XV Partners Growth Investments I, Peak XV Partners Growth Investment Holdings II, and Sequoia Capital GFIV Mauritius Investments. The purchase agreement, filed this morning, outlines that 1.02 crore equity shares will be acquired at Rs 746 per share.

In addition to this strategic acquisition, the company has also announced an open offer for a 26% stake from the market at an offer price of Rs 864 per share, totaling Rs 544.17 crore. Despite the acquisition, Prataap Snacks will continue to be a listed entity. Established in 2003, Prataap Snacks operates multiple manufacturing facilities and partners with numerous distributors, achieving a revenue of Rs 1,617.93 crore for the financial year 2024 with a 10-year CAGR growth of 14%.

(With inputs from agencies.)