Prataap Snacks IPO subscribed 47.29 times on final day
Mumbai: The Rs482 crore initial public offering (IPO) of Prataap Snacks Ltd was subscribed 47.29 times on Tuesday, the final day of the IPO, data from stock exchanges shows.
As of 6pm, the portions reserved for institutional and retail investors were subscribed 77.58 times and 7.83 times, respectively. The portion set aside for high-net-worth investors saw 101.52 times subscription.
The company has priced its shares in a range of Rs930-938 per share.
The IPO comprises a fresh issue of Rs200 crore. The proceeds from the fresh issue will be used by the company for repaying borrowings, funding capital expenditure requirements for setting up new production lines, modernization of existing manufacturing facilities, and investment in subsidiary Pure N Sure, and marketing and brand-building activities.
The promoters and investors are collectively selling around 3 million shares in the share sale. Sequoia Capital is selling around 1.78 million shares, which at the upper end of the price band will fetch the venture capital firm about Rs167 crore.
Sequoia Capital currently holds 63.15% of Prataap Snacks. It has pumped a total of Rs265 crore into Prataap Snacks since it first invested in the company in 2011.
In June 2016, Aditya Parekh-led private equity firm Faering Capital invested Rs45 crore in the company.
Prataap Snacks has appointed Edelweiss Financial Services Ltd, JM Financial Institutional Securities Ltd and Spark Capital Advisors (India) Pvt. Ltd to manage its public offering.
On 21 September, Prataap Snacks sold shares worth Rs143.4 crore to 15 institutional investors as part of its anchor book allocation. Investors that participated in the anchor book allocation include Small Cap World Fund Inc, Fidelity Funds, Goldman Sachs India Ltd, HDFC Trustee Co. Ltd and SBI Life Insurance Co Ltd.
Established in 2009, Prataap Snacks is based in Indore. The company sells potato chips and a variety of spicy savouries under the brand name Yellow Diamond.
In fiscal 2016-17, the company reported a revenue of Rs903.91 crore, up 19.4% from a year ago. The company reported a profit of Rs9.8 crore in 2016-17, as against a profit of Rs27.3 crore in the previous year.
Earlier this month, Mint reported Prataap Snacks has raised Rs50 crore in a pre-IPO round from public markets investor Malabar Investments, which picked up a 2.5% stake in the company.