Authum Investment and Mahi Madhusudan Kela buy 46.85% controlling stake in Prataap Snacks

Authum Investment and Mahi Madhusudan Kela have acquired 46.85 per cent controlling stake in snack food company Prataap Snacks for ₹846.60 crore. Following this, Authum Investment & Infrastructure Limited and Mahi Madhusudan Kela have announced an open offer for the acquisition of up to an additional 26 per cent in Prataap Snacks Ltd.

Authum acquired the stake from Private Equity promoters, including Peak XV Partners Growth Investment Holdings I, Peak XV Partners Growth Investment II and Sequoia Capital GFIV Mauritius Investments.

The open offer seeks to purchase up to 62.98 lakh fully paid-up equity shares, each with a face value of ₹5, from the company’s public shareholders. The stake will be sold at a discount of 28.4% to Thursday’s close of ₹1,042.10 per share. Based in Madhya Pradesh, Prataap Snacks are known for their “Diamond” brand of potato chips.

“This acquisition aligns with our long-term strategy of diversifying our portfolio while investing in sectors that demonstrate both stability and growth potential. Our intention is to nurture and expand this business, maximizing value creation for all stakeholders and ensuring a sustainable, profitable future for the company,” Authum Investment (AIIL) said in a statement. The transaction is expected to be completed within 6 months.

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The shares of Authum Investment and Infrastructure Limited (AIIL) were trading at ₹1,717.55 up by ₹12.05 or 0.71 per cent on the NES today at 10.15 am.