Prataap Snacks gets SEBI nod for IPO

Yellow Diamond Chips maker receives capital market regulator SEBI’s approval to launch its initial public offering.

Prataap Snacks, the Indore based company which filed its draft red herring prospectus last October plans to raise Rs.250 crore through a fresh issue of share besides an offer for sale by its private equity investor Sequoia Capital.

The company once it gets listed will increase the basket of the listed snacks makers, however it competes aggressively with multinational firm PepsiCo, besides local strongholds Haldiram’s and Balaji Wafers within the Rs 20,000-crore salty snacks category. 

The firm is planning to utilize the money to overcome its debt of Rs.50 crore, capital expenditure for setting up new production lines and modernising existing factories at Indore and Guwahati .

Prataap Snacks was started in 2003 by brothers Amit and Apurva Kumat and Arvind Mehta. It makes and sells potato-based snacks, extruded snacks and namkeen. Five years ago, it acquired the snack foods business of its group company, Prakash Snacks Pvt. Ltd and brought in the Yellow Diamond brand and the snack foods business under one umbrella.