Potato Chips Maker Prataap Snacks’ Rs 480-Crore IPO To Open Next Week
Pratap Snacks’ initial public offering opens on September 22.
Prataap Snacks Ltd., the maker of Yellow Diamond potato chips, is looking to raise up to Rs 480 crore through an initial public offering that opens on September 22.
The offer consists of Rs 200 crore worth of fresh equity issue while the remaining will be via an offer for sale by the promoters and investor Sequoia Capital. It will also offer a discount of Rs 90 per share to eligible employees of the company. The price band of the three-day issue has been fixed at Rs 930-938 per share.
Post the IPO, private equity player Sequoia Capital’s stake in the snacks company will decline to 49 percent from 63 percent while promoters will hold 24 percent as compared to 33-34 percent currently, Amit Kumat, managing director and chief executive officer of the company told BloombergQuint.
The proceeds of the offer will be used to repay debt, and for marketing and brand building, according to its prospectus. Prataap Snacks is looking to expand its reach in south India and is also looking to strengthen its presence in Punjab and Uttar Pradesh, Kumar said.
The maker of Diamond chips expects to see its revenue grow on increased penetration in existing geographies and new launches. Revenue in FY17 rose 19.4 percent to Rs 905.4 crore on a year-on-year basis. Over the next five years, it plans to reduce the revenue contribution from lower priced chips packets to 60 percent from 80 percent currently.