Prataap Snacks to offload 26% stake

NEW DELHI: Authum Investment & Infrastructure and Mahi Madhusudan Kela, who bought the 47% stake of private equity (PE) firm Peak XV (formerly Sequoia Capital) in Prataap Snacks (PSL) on Friday submitted a draft letter to the stock exchange to launch the mandatory open offer for acquiring an additional 26.01% stake.

“This offer is being made by the Acquirer along with the PAC to the Public Shareholders to acquire up to 62,98,351 equity shares representing 26.01% of the voting share capital (offer size), at an offer price of Rs 864 per equity share (offer price) determined in accordance with the provisions of SEBI (SAST) Regulations,” said the draft letter filed on the BSE. The acquirers will be spending up to Rs 544.17 crore to acquire the 26.01% stake. The offer price of Rs 864 per share is significantly lower than the current share price of PSL. On Friday, shares of the Indore-based company closed 1.75% lower at Rs 1,123.75 apiece on the NSE. The acquirer (i.e. Authum Investment & Infrastructure) and the PAC (i.e. Mahi Madhusudan Kela) had entered into a share purchase agreement on September 26 with Peak XV to which the acquirer had agreed to acquire 1.02 crore equity shares of PSL and PAC (Kela) agreed to acquire from the 11 shares at Rs 746 per share for an aggregate consideration of Rs 846.60 crore.