Prataap Snacks shares rally 14% on report ITC eyeing stake

Prataap Snacks surged 13.78 per cent to hit a high of Rs 1,336.40 on BSE. The stock hit a 52-week high of Rs 1,450 earlier in January this year. Buyout funds TA Associates, Apax and KKR have been tapped since Peak XV initiated a plan to fully exit its nearly 13-year-old investment in Prataap Snacks, the report said.

Prataap Snacks Ltd shares climbed 14 per cent in Thursdy's trade as a media report emerged suggesting the FMCG giant ITC was looking to purchase 47 per cent stake held by Peak XV Partners (erstwhile Sequoia Capital) in the Indore-based company, This, the report suggested, came following the failure of talks with Haldiram’s owing to a valuation mismatch.
Better known or Yellow Diamond chips and Avadh brand of namkeen, Prataap Snacks was also been looked at by Bikaji Foodsbut such negotiations fizzled out, ET reported quoting sources as saying.
Following the report, the stock rose 13.78 per cent to hit a high of Rs 1,336.40 on BSE. The stock hit a 52-week high of Rs 1,450 earlier this week. The scrip still needs 9 per cent rise to revisit its one-year high level.

The FMCG fim recently reporting doubling of profit in the December quarter at Rs 10.79 crore, up 106 per cent YoY. Sales for the quarter stood at Rs 406.24 crore while operaing Ebitda up was 49 per cent at Rs 34.74 crore. EBITDA margin for the quarter stood at 8.5 epr cent, up 303 basis points

As per the report Buyout funds TA Associates, Apax and KKR, are among others that have been tapped since Peak XV initiated a plan to fully exit its nearly 13-year-old investment in Prataap and hired Deutsche Bank to sell the company.

The transaction, the report said, if successful, would trigger an open offer for an additional 26 per cengtof the Indore-based company, which has been a laggard ever since its stock market debut in 2017 when it listed at a 33 per cent premium.

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