Prataap Snacks IPO begins today, aims to raise Rs 482 crore

Indore-based snacks maker Praatap Snacks will commence its IPO today. The issue, with a price band of Rs 930-938 per equity share, will close on September 26.

The firm collected a little over Rs 143 crore from anchor investors on Thursday and would allot a total of 15,28,789 shares.

The shares would be allotted to 15 anchor investors at Rs 938, which is the upper end of the price band, the company informed.

Goldman Sachs India Ltd, Fidelity Funds, Smallcap World Fund Inc and HDFC Trustee Company are among the anchor investors.

Prataap Snacks would allot a total of 15,28,789 shares to anchor investors garnering Rs 143.4 crore.

The Rs 482-crore issue includes Rs 200 crore through fresh equity issue and the rest from offer for sale. The company is offering a discount of Rs 90 per share to eligible employees.

The firm plans to use the proceeds to expand its chips making capacity by 50 per cent and double that of namkeens. It will also use the funds for marketing and brand building activities and to retire the debt on its books.

Sequoia Capital currently holds 63.15 percent in Prataap Snacks. Prataap Snacks has appointed Edelweiss Financial Services, JM Financial Institutional Securities and Spark Capital Advisors (India) to manage its public offering.

Prataap Snacks is one of the top six Indian snack food companies in terms of revenues in 2016, and among the fastest growing companies in the Indian organised snack market between 2010 and 2016. It is present in three major savoury snack food categories in India and all its products are sold under the Yellow Diamond brand.

The firm has a pan-India distribution network supported by strategically located manufacturing facilities. Its wide network of super stockists and distributors is supported by large team of sales representatives and arrangements with various modern retail outlets.

The firm owns and operates three manufacturing facilities, one located at Indore, Madhya Pradesh and the other two located at Guwahati, Assam.

As of June 30, 2017, its distribution network included 218 super stockists across 26 States and one Union Territory in India and over 3,500 distributors.