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Business News/ Market / Stock-market-news/  Prataap Snacks Rs250 crore IPO to hit markets shortly
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Prataap Snacks Rs250 crore IPO to hit markets shortly

Prataap Snacks aims to use the proceedings from the Rs250 crore IPO to expand the capacity of chips making plant by 50%

Prataap Snacks had filed its IPO papers last year with the Sebi which has been approved laterPremium
Prataap Snacks had filed its IPO papers last year with the Sebi which has been approved later

Mumbai: Indore-based snacks maker Prataap Snacks expects to launch its Rs250-crore initial public offer (IPO) in the next couple of months.

“We are in discussions with merchant bankers on the timing. By October-November we should definitely be listed," Prataap Snacks managing director and chief executive Amit Kumat said.

The company had filed its IPO papers last year with the Sebi which has been approved later. The company aims to use the proceedings from the Rs250 crore IPO to expand the capacity of chips making plant by 50% and double that of namkeens, apart from fully retiring debt on its books, which is around Rs43 crore, marketing and brand building activities, chief financial officer Sumit Sharma said.

The Sequoia Capital-backed company, which clocked a revenue of Rs903 crore last fiscal, also plans to enter the sweet snacks category shortly, according to Kumat. The company, which makes products under the Yellow Diamond brand, gets 80% of its sales from the Rs5 pack but expects its share to reduce in the next five years.

“It used to be 90% but it has come down to 80%. With lot of A&B class outlets shifting to Rs10 packs, I think in five years’ time, close to 60% of our revenue should come from Rs5 packs," Kumat said. The organised snack category is estimated to be Rs22,000 crore growing at 10-11%.

Edelweiss, JM Financial and Spark Capital will be managing the issue.

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Published: 04 Sep 2017, 06:04 PM IST
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