IPO: Prataap Snacks Limited

Company & Business Profile

Prataap Snacks Limited is one of the top six Indian snack food companies in terms of revenues in 2016, and among the fastest growing companies in the Indian organised snack market between 2010 and 2016 (Source: FS Report). Prataap is present in three major savoury snack food categories in India i.e. Extruded Snacks, Chips and Namkeen, with a pan‐India distribution network. All their products are sold under the “Yellow Diamond” brand.

Its diversified product portfolio includes three categories:

Extruded Snacks:

Extruded snacks are processed, reconstituted and shaped potato or cereal based snacks. Extruded snacks may be flavoured or unflavoured. It includes puffed snacks. Its Extruded Snacks products are divided into two sub‐categories: (i) Shaped Extruded Snacks, which includes Puffs, Rings and Pellets products; and (ii) Random Extruded Snacks, which includes Chulbule product. Chulbule was introduced by Prakash Snacks in Fiscal 2006, and this business was subsequently acquired by the Company in Fiscal 2012. Rings, one of its major products in the Extruded Snacks category, were launched in Fiscal 2012.

Chips:

Chips include fried, sliced chips or crisps made from potatoes, hummus, lentils etc. It includes flavoured and unflavoured chips, and may be standard chips, thick‐cut and / or crinkle‐cut. Potato Chips were introduced by the Company in Fiscal 2010. Its Group Company, Prakash Snacks, introduced potato chips in Fiscal 2005 and it acquired its potato chips manufacturing business in Fiscal 2012.

Namkeen:

Namkeen are a type of traditional savoury Indian snack which includes products such as moong dal, masala or fried nuts, sev and bhujia. Namkeen under the Yellow Diamond brand was launched by the Company in Fiscal 2012, pursuant to the business transfer agreement dated September 28, 2011.

Objects of the Issue

The Issue comprises the Fresh Issue and the Offer for Sale.

Offer for Sale: Each of the Selling Shareholders will be entitled to their respective portion of the proceeds from the Offer for Sale. Company will not receive any proceeds from the Offer for Sale.

Fresh Issue: Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:

A. Repayment/pre-payment, in full or part, of certain borrowings availed by the Company.
B. Funding capital expenditure requirements in relation to expansion and modernisation at certain existing manufacturing facilities.
C. Investment in its Subsidiary, Pure N Sure, towards enabling the repayment/pre-payment of certain borrowings availed by Subsidiary.
D. Marketing and brand-building activities.
E. General corporate purposes.

Listing:

The equity shares of the company are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

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