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The Competition Commission of India approved the acquisition of 72.8% stake in Prataap Snacks Ltd by Authum Investment and Mahi Madhusudan Kela. Prataap Snacks share price closed 3.28% higher post-announcement.
The Competition Commission of India (CCI) has approved the acquisition of a 72.8% stake in Prataap Snacks Ltd by Authum Investment & Infrastructure Ltd and Mahi Madhusudan Kela. This acquisition marks a significant shift in ownership for the snack brand Diamond. The transaction also includes a public open offer for 26.38% of Prataap Snacks' equity from shareholders.
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Acquisition Stake: 72.8% voting share capital.
Entities Involved: Authum Investment and Mahi Madhusudan Kela.
Public Offer: 26.38% equity representing 62.98 lakh shares.
Prataap Snacks Share Price: Closed 3.28% higher at Rs 1,134.7.
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Authum Investment and Mahi Madhusudan Kela, the key acquirers, take control of the majority stake from Peak XV Partners (formerly Sequoia Capital), which exited its 47% holding in September. The approval by the antitrust watchdog enables the completion of the merger process.
Aspect | Details |
Stake Acquired | 72.8% |
Public Offer Shares | 62.98 lakh |
Public Offer Stake | 26.38% |
Face Value Per Share | Rs 5 |
The open offer follows regulatory norms, ensuring public shareholder participation in the transaction.
Prataap Snacks share price reacted positively to the news, closing 3.28% higher at Rs 1,134.7 on the BSE, outperforming the flat Nifty 50 index. Year-to-date, the stock has risen nearly 2%.
The CCI’s clearance of the 72.8% stake acquisition in Prataap Snacks by Authum Investment and Mahi Madhusudan Kela paves the way for a significant change in ownership structure. The approval highlights compliance with regulatory frameworks, while Prataap Snacks share price reflects positive investor sentiment following the announcement.
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