Authum Investment, Mahi Madhusudan Kela acquire 46.85% stake in Prataap Snacks

Shares of Prataap Snacks fell as much as 2.76 per cent to hit an intraday low of Rs 1,024.70 after the company informed exchanges that Authum Investment and Mahi Madhusudan Kela acquired 46.85 per cent stake in the company thereby triggering mandatory open offer. The shares came under selling pressure because the open offer price of Rs 864 is at a discount of 18 per cent to its previous close of 1,053.75.

As part of the open offer, Authum Investment and Mahi Madhusudan Kela will be acquiring up to 62,98,351 shares representing 26 per cent stake in the company at Rs 864 per share aggregating to a total consideration of Rs 544 crore, JM Financial, the manager to the open offer said.

The share purchase agreement was signed at Rs 746 per share at a discount of 30 per cent to its Thursday's closing price.

Prataap Snacks disclosed the deal to the exchanges on September 26, which will result in the company becoming an associate of Authum Investment (AIIL).

AIIL is acquiring the stake in Prataap Snacks from several private equity investors, including Peak XV Partners Growth Investment Holdings I, Peak XV Partners Growth Investment II, and Sequoia Capital GFIV Mauritius Investments. Following the transaction, these sellers will no longer be part of the promoter group in the company.