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CCI Approves 72.8% Stake Acquisition in Prataap Snacks

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Synopsis:

The Competition Commission of India approved the acquisition of 72.8% stake in Prataap Snacks Ltd by Authum Investment and Mahi Madhusudan Kela. Prataap Snacks share price closed 3.28% higher post-announcement.

Prataap Snacks news today

The Competition Commission of India (CCI) has approved the acquisition of a 72.8% stake in Prataap Snacks Ltd by Authum Investment & Infrastructure Ltd and Mahi Madhusudan Kela. This acquisition marks a significant shift in ownership for the snack brand Diamond. The transaction also includes a public open offer for 26.38% of Prataap Snacks' equity from shareholders.

Also read: Transformer & Rectifier to Consider Bonus Issue on 8 January

PRATAAP SNACKS LIMITED

Trade

115517.30 (1.52 %)

Updated - 03 January 2025
1169.95day high
DAY HIGH
1136.00day low
DAY LOW
94643
VOLUME (BSE)

Key Takeaways

  • Acquisition Stake: 72.8% voting share capital.

  • Entities Involved: Authum Investment and Mahi Madhusudan Kela.

  • Public Offer: 26.38% equity representing 62.98 lakh shares.

  • Prataap Snacks Share Price: Closed 3.28% higher at Rs 1,134.7.

Also read: Piramal Enterprises Invests ₹1,000 Crore in Piramal Capital via Rights Issue

Ownership Changes And CCI Approval

Authum Investment and Mahi Madhusudan Kela, the key acquirers, take control of the majority stake from Peak XV Partners (formerly Sequoia Capital), which exited its 47% holding in September. The approval by the antitrust watchdog enables the completion of the merger process.

Transaction Overview

Aspect

Details

Stake Acquired

72.8%

Public Offer Shares

62.98 lakh

Public Offer Stake

26.38%

Face Value Per Share

Rs 5

The open offer follows regulatory norms, ensuring public shareholder participation in the transaction.

Stock Market Impact

Prataap Snacks share price reacted positively to the news, closing 3.28% higher at Rs 1,134.7 on the BSE, outperforming the flat Nifty 50 index. Year-to-date, the stock has risen nearly 2%.

The CCI’s clearance of the 72.8% stake acquisition in Prataap Snacks by Authum Investment and Mahi Madhusudan Kela paves the way for a significant change in ownership structure. The approval highlights compliance with regulatory frameworks, while Prataap Snacks share price reflects positive investor sentiment following the announcement.

Also read: Kalpataru Projects Secures ₹1,011-Crore Orders Across Key Sectors

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Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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