Prataap Snacks makes it stock market debut with a premium of 33 per cent

Prataap Snacks made a strong stock market debut on Thursday, with the scrip getting listed at a premium of 33.23 per cent at Rs 1,250 per share on BSE, against an issue price of Rs 938 per share. 

The initial public offer worth Rs 482 crore was sold during September 22-26 and had received a good response from the investors. The stock witnessed investors bidding for 47.39 times the issue size while the quota limit for qualified institutional buyers (QIBs) was subscribed 76.89 times, non-institutional investors subscribed 101.15 times and retail investors subscribed 8.48 times.   

The company manufactures snacks under its brand ‘Yellow Diamond’ and has recorded a compounded annual growth rate of 27.34 per cent for the period FY13-17. According to its statement, the company will utilize the IPO proceeds for the purpose of expansion, marketing, brand building and to settle any accruing debts.

The market share of Prataap Snacks in the organised snacks market has increased up to 4 per cent in 2016 from one per cent in 2010. While the organised snacks market of India is expected to grow at 14.6 per cent CAGR by 2021, at present the organised snacks market is estimated at Rs 22,000 crore.

At 1101 hours on October 5, the stock was trading at Rs 1184.10 per share, at a premium of 26.24 per cent from its issue price and 5.59 per cent lower than its previous close on BSE.