The Competition Commission of India (CCI) has approved the acquisition of a 72.89% stake in Prataap Snacks by Authum Investment & Infrastructure and Mahi Madhusudan Kela.
The deal, valued at Rs8.66bn ($101m) and outlined in September, involved the acquisition through a share purchase agreement and an open offer at Rs864 per share.
The shares were acquired from Peak XV Partners, previously known as Sequoia Capital India and Sea.
Prataap Snacks, established in 2009, operates in the snack food segment, offering products under the Yellow Diamond and Avadh brands.
The company is headquartered in Indore, Madhya Pradesh.
It operates 15 manufacturing facilities, eight owned and seven contracted, and a distribution network with over 5,200 super/sub-distributors.
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By GlobalData
Prataap Snacks’ products are sold through independent grocers and small retail outlets across the local neighbourhoods of its key markets.
Announcing the financial results for the second quarter and first half of the fiscal year, periods that ran to 30 September, Prataap Snacks managing director Amit Kumat said: “We will seek to build a collaborative partnership with the new shareholders that further enriches Prataap’s position and strategic depth, with the objective of generating even greater value creation for all stakeholders in the years ahead.”
In the second quarter, the company generated revenue of Rs4.41bn, with an operating EBITDA of Rs192m, reflecting a margin of 4.3%.
During the three months, Prataap Snacks’ PAT stood at Rs62m, with diluted EPS of Rs2.58.
For the first half of the financial year, the group achieved revenue of Rs8.62bn, with an operating EBITDA of Rs 492m, representing a margin of 5.7%.
The company posted a PAT Rs156m, translating to a diluted EPS of Rs6.52.
