Prataap Snacks' stock rises 11% after report says Haldiram's keen to buy majority stake in chips maker

Shares of Prataap Snacks Limited (PSL) surged 11 per cent on Thursday after a news report claimed that snacks majpr Haldiram's is in talks to acquire a majority stake in the company behind 'Yellow Diamond Chips'. With the acquistion, Haldiram's is eyeing to expand its presence in the potato chip market, Reuters said quoting two sources. Prataap Snacks, which is based in Indore, is currently valued at $350 million.

Haldiram's is eyeing a majority stake of at least 51 per cent, but a final number has not been decided. The talks are at an early stage and the deal valuation has not been discussed, the report said.

Last month, news reports had said that the deal is being led by venture capital firm Peak XV Partners, formerly Sequoia Capital India, which is part of the promoter group and owns close to 47 per cent of the company.

PSL has a network of more than 5,000 distributors and sub distributors and is clear competitor of Pepsi's Lay's brand.

Shares of Prataap Snacks closed at Rs 1,371.45 , up by 10.73 per cent.