Authum Investment and Infrastructure Ltd and Mahi Madhusudan Kela to Acquire a Major Stake of 26.01 per cent in Indian Snack Food Company
The company has been maintaining a healthy dividend payout of 20.5 per cent. The stock has given 30 per cent returns in last 6 months.
Authum Investment & Infrastructure Limited, along with Ms. Mahi Madhusudan Kela as a person acting in concert, has announced an open offer to acquire 62,98,351 equity shares of Prataap Snacks Limited, representing 26.01 per cent of its voting share capital, at a face value of Rs 5 per share. Following the public announcement on September 26, 2024, and subsequent updates, the Letter of Offer dated January 7, 2025, has been released for the public shareholders of Prataap Snacks Limited.
The main sellers are Peak XV Partners and Sequoia Capital GFIV Mauritius Investments, with Peak XV contributing 81,36,179 shares.
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The acquisition process follows regulatory timelines and will complete by February 2025, including payments and transfer of shares. Once completed, Authum and PAC will become the new promoters of Prataap Snacks and replace the current promoters. This deal is an important step for Authum to grow its presence in the consumer goods market.
Prataap Snacks Ltd (PSL) is an Indian snack food company that manufactures and markets multiple product variants, such as potato chips, extruded snacks, and namkeen (traditional Indian snacks) under the Yellow Diamond brand and sweet snacks under the Rich Feast brand.
The company has a market capitalisation of Rs 2,765 crore. Shares of Prataap Snacks are trading at Rs 1,158 per share while it has recorded a 52-week high of Rs 1,450 and 52-week low of Rs 747. The company has been maintaining a healthy dividend payout of 20.5 per cent. The stock has given 30 per cent returns in last 6 months.
Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.