Prataap Snacks Limited is an Indian Snack Food Company. It is Indore, MP based company. This company sell products under the brand name “Yellow Diamond”. This post will find out the Prataap Snacks IPO Review and we will try to figure out if there is any profit making investment opportunities for our followers in this public issue
About Prataap Snacks IPO :
- IPO opens – September 22, 2017
- IPO closes – September 26, 2017
- IPO Price – Rs. 930 – Rs. 938 per equity shqare
- Market Lot – 15 equity shqare
- Issue Capital (approx) – Rs.420 Cr.
- Issue Type – Book Built Issue IPO.
- Issue Size – Fresh Issue of [*] Equity Shares of Rs 5 aggregating up to Rs 250.00 Cr Offer for Sale of 3,005,770 Equity Shares of Rs 5 aggregating up to Rs [.] Cr.
- Face Value – Rs 5 Per Equity Share.
- Shares for sale – 29,80,000.
- Listing Exchange – BSE, NSE.
- DRHP – Click Here
Objectives of the Issue :
- 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:
- Repayment/pre-payment, in full or part, of certain borrowings availed by the Company.
- Funding capital expenditure requirements in relation to expansion and modernisation at certain of our existing manufacturing facilities.
- Investment in its Subsidiary, Pure N Sure, towards enabling the repayment/pre-payment of certain borrowings availed of by our Subsidiary.
- Marketing and brand-building activities.
- General corporate purposes.
About The Company-
Company manufacture and sell it’s snacks under three major savoury snack food categories:
- Extruded Snacks: Processed, reconstituted and shaped potato or cereal based snacks. This includes Puffs, Rings, Pellets and Chulbule products.
- Extruded Snacks: Processed, reconstituted and shaped potato or cereal based snacks. This includes Puffs, Rings, Pellets and Chulbule products.Chips: Fried, sliced chips or crisps made from potatoes, hummus, lentils.
- Chips: Fried, sliced chips or crisps made from potatoes, hummus, lentils.Namkeen: Traditional savoury Indian snack which includes products such as moong dal, masala or fried nuts, sev and bhujia.
- Namkeen: Traditional savoury Indian snack which includes products such as moong dal, masala or fried nuts, sev and bhujia.
Prataap Snacks own and operate three manufacturing facilities, one located at Indore and the other two located at Guwahati, Assam.
- Packaged foods include ready-to-eat / cook foods that are packed and sold to consumers. They are primarily aimed at convenience and usually undergo a certain degree of processing to increase shelf life, taste, stability, etc.
- It includes food items like bakery products, canned / dried processed food, frozen processed food, meal replacement products, dairy products, snacks, confectionaries, beverages, etc.
- The Rs.500 billion Indian snacks market is characterised by a large number of unorganised players across all product segments.
- They also operate in a small geographic range confined to a single state or city. Apart from this, there is a large presence of players that supply fresh products in chips and traditional Indian snacks categories.
- The products developed by this process are known as extruded snacks and they differ in colour, shape, and aroma.
Promoters of the company :
- Arvind Mehta.
- Amit Kumat.
- Apoorva Kumat.
- Rajesh Mehta.
- Naveen Mehta.
- Arun Mehta.
- Kanta Mehta.
- Rita Mehta.
- Premlata Kumat.
- Swati Bapna.
- Sandhya Kumat.
- Rakhi Kumat.
- SCI Growth Investments II.
Prataap Snacks IPO Review: The pros of this issue is their business model and the emphasize on the processed foods sector by the Indian Government. The cons include competing with big names like Pepsi, the high issue price as well as the overbought nature of the overall markets. Hence this Prataap Snacks IPO Review posts a NEUTRAL view and advises investors to check the institutional bidding on the last day of the issue.