Issue oversubscribed 47.39 times
The initial public offer (IPO) of Prataap Snacks received bids for 17.19 crore shares, data on the National Stock Exchange of India (NSE) website showed. The IPO was subscribed 47.39 times. The IPO opened for subscription on Friday, 22 September 2017 and closed yesterday, 26 September 2017. The price band for the IPO had been fixed at Rs 930 to Rs 938 per share.
Category wise, the qualified institutional buyers (QIBs) category was subscribed 76.89 times. The non institutional investors (NIIs) category was subscribed 101.15 times. The retail individual investors (RIIs) category was subscribed 8.48 times.
Ahead of the IPO, Prataap Snacks raised Rs 143.40 crore by selling 15.28 lakh shares to a total of 15 anchor investors at Rs 938 per share, the top end of IPO price band.
Prataap Snacks makes potato chips and a variety of savouries under the brand name Yellow Diamond. It also plans to expand into confectionaries and health snacks.
Prataap Snacks IPO comprised of a fresh issue of Rs 200 crore. The objects of the fresh issue is to spend around Rs 40 crore on advertising and brand promotional activities, Rs 70 crore on capital expenditure in relation to expansion and modernisation, Rs 13 crore in relation to repayment of certain borrowings, Rs 29.37 crore worth of investments in subsidiary for repayment of certain loans availed by the subsidiary and rest for general corporate purposes, apart from the benefits of listing the equity shares on the BSE and the NSE and to enhance its visibility and brand image and provide liquidity to its existing shareholders.
Prataap Snacks promoters and venture capital investor Sequoia Capital had collectively sold 30.06 lakh shares in the share sale. It includes up to 3.69 lakh equity shares by Sequoia Capital GFIV Mauritius Investment, up to 0.94 lakh equity shares by Sequoia Capital India Growth Investment Holdings I, up to 13.17 lakh equity shares by SCI Growth Investments II, and by the promoters and promoters group, which includes Arvind Mehta (upto 1.84 lakh share), Naveen Mehta (upto 1.39 lakh shares), Arun Mehta (upto 1.39 lakh shares), Rajesh Mehta (up to 3.62 lakh shares), Kanta Mehta ( up to 0.69 lakh Shares, Premlata Kumat (up to 0.78 lakh shares), Swati Bapna (up to 0.22 lakh shares, up to 1.17 lakh equity shares by Apoorva Kumat and up to 1.17 equity shares by Amit Kumat.
On a consolidated basis, Prataap Snacks reported net profit after minority interest of Rs 9.89 crore on revenue from operations of Rs 903.92 crore in the year ended March 2017.
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