Acquisition Update: Stock Price of this Mid-cap NBFC Surged by 10 per cent on Acquiring 42.33 per cent stake in Prataap Snacks Ltd
With a market capitalisation of Rs 26,156 crore and a PE ratio of 6.61, the company trades at a discount compared to the industry PE of 19.7x.
Shares of Authum Investment & Infrastructure Limited surged 10 per cent today following the company's latest disclosure on its acquisition of Prataap Snacks Limited (PSL). The stock witnessed strong buying interest after the company confirmed that it has acquired 42.33 per cent of PSL’s voting share capital, making PSL an associate company of Authum Investment.
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As per the regulatory filing, Authum Investment executed a Share Purchase Agreement (SPA) on September 26, 2024, followed by an open offer to acquire up to 62,98,351 equity shares (26.01 per cent stake) in PSL. The latest update reveals that as of February 25, 2025, the company has completed the acquisition of 1,02,48,709 equity shares, comprising 127 shares through the open offer and 1,02,48,582 shares via the SPA. The total transaction is valued at Rs 764.55 crore, with shares acquired at Rs 865.66 per share (open offer) and Rs 746 per share (SPA).
Investors reacted positively to this strategic move, considering it an opportunity for diversification and growth in the snack food segment. PSL, a well-known manufacturer of potato chips, extruded snacks, and namkeen, had a turnover of Rs 1,617.93 crore as of March 31, 2024.
About the Company
Authum Investment & Infrastructure Limited is engaged in the business of fund-based activities viz, investment in shares, securities, mutual funds etc. and providing loans and advances, etc.
With a market capitalisation of Rs 26,156 crore and a PE ratio of 6.61, the company trades at a discount compared to the industry PE of 19.7x. The company has a high ROCE of 39.3 per cent and ROE of 44 per cent.
Investors should keep an eye on this Mid-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.