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.
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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 GlobalDataPrataap 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 Q2 financial year 2024-25 (FY25), Prataap Snacks reported revenue of Rs4.41bn, a 2.3% increase from Rs4.31bn in Q2 financial year 2023-24 (FY24).
Operating EBITDA in Q2 FY25 was Rs192m, reflecting a margin of 4.3%, lower than the Rs379.5m and 8.75% margin reported in Q2 FY24.
The company’s PAT for Q2 FY25 was Rs62m, a 62.4% decline from Rs165.2m in Q2 FY24.
For H1 FY25, revenue stood at Rs8.62bn, up from Rs8.17bn in the year-ago period and EBITDA was Rs492m with a 5.7% margin, compared with Rs708m and an 8.62% margin in H1 FY24.
Meanwhile, H1 FY25 PAT dropped to Rs156m from Rs 307.2m in H1 FY24.
