India's competition watchdog approves majority stake sale in Prataap Snacks

Authum Investment & Infrastructure

31/12/2024 13:42

Dec 31 (Reuters) - India's competition regulator, on
Tuesday, approved the acquisition of a 72.8% stake in snack
maker Prataap Snacks  PRAT.NS  by Authum Investment &
Infrastructure  AUTH.NS  and investor Mahi Madhusudan Kela.
    In September, the two investors acquired a majority 46.85%
stake in the Indore-based company from venture capital firm Peak
XV Partners, and announced an open offer for an additional 26%
stake.
    Prataap, best known for its Yellow Diamond brand of chips, 
competes with Pepsi's  PEP.O  Lay's brand and other snack makers
in a market where local, unorganised food sellers still dominate
the fried chips segment.
    The company, which has a market capitalization of about
$317.85 million, sells over 12 million packets of its salty
snacks daily, which are priced as low as 5 rupees (6 U.S.
cents), according to its website.
    Rival snack maker Haldiram's was in talks to acquire a
majority stake in the company, with Peak XV partners looking to
offload its stake, Reuters reported in January. 


($1 = 85.5750 Indian rupees)

 (Reporting by Ananta Agarwal; Editing by Vijay Kishore)
 ((Ananta.agarwal@thomsonreuters.com;))