Prataap Snacks, a company that makes snacks, has announced that Authum Investment & Infrastructure and Mahi Madhusudan Kela want to buy a part of the company. They plan to buy up to about 62.98 lakh equity shares, which is 26.01% of Prataap Snacks, for Rs 865.66 each. This offer includes a cash price of Rs 864 per share and an interest amount of Rs 1.66 per share.
After the news came out, Prataap Snacks’ share price increased by 3.04%, closing at Rs 1,181 on the National Stock Exchange (NSE). The total value of Prataap Snacks is about Rs 2,800 crore. Authum Investment & Infrastructure, a registered non-banking financial company (NBFC) founded in 1982, is valued at Rs 32,265 crore.
Mahi Kela is known as the wife of famous investor Madhusudan Kela. This offer follows India’s regulations for purchasing shares from public shareholders. If more shareholders want to sell their shares than the offered amount, then the shares will be accepted proportionately, meaning not everyone may get their shares sold.
The Competition Commission of India (CCI) approved this acquisition back in December. However, Prataap Snacks has faced challenges, with its share price dropping by 1.2% in the last year, while the Nifty index has gained 10%. On a positive note, over the last six months, Prataap Snacks has performed better than Nifty, increasing by 32%, while Nifty has lost some value.
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