CCI Approves Prataap Snacks Buyout By Mahi Madhusudan Kela, Authum Investment
Authum Group and Kela bought 47% stake in Prataap Snacks back in September and has offered to acquire an additional 26% from the public.
The Competition Commission of India on Tuesday approved the proposed acquisition of a 72.8% stake in Prataap Snacks Ltd. by Alpana Sanjay Dangi's Authum Investment & Infrastructure Ltd. and Mahi Madhusudan Kela.
"CCI approves the proposed combination involving acquisition of 72.8% voting share capital in Prataap Snacks Limited by Authum Investment & Infrastructure Limited and Ms. Mahi Madhusudan Kela," the antitrust watchdog said in a post on X.
Alpana Dangi is the wife of well-known investor Sanjay Dangi, and Mahin Madhusudan Kela is the wife of Madhusudan Kela.
In September, the company's private equity investor, Peak XV Partners (formerly Sequoia Capital), exited their 47% stake by selling shares to Authum Group and Kela.
The two entities also launched an open offer to purchase up to 62.98 lakh fully paid-up equity shares, each with a face value of Rs 5, from the company’s public shareholders. This represents 26.38% equity in Prataap Snacks, the owner of snack brand Diamond.
For mergers and acquisitions, approval from CCI is required.
Prataap Snacks stock closed 3.28% higher at Rs 1,134.7 apiece, compared to a flat benchmark Nifty 50. The CCI approval came after market hours. The stock has risen nearly 2% this year.
Of the two analysts tracking Prataap Snacks, one has a 'buy' rating on the stock, and the other recommends a 'hold,' according to Bloomberg data. The average of 12-month analysts' price target of Rs 1,030.5 implies a potential downside of 9.4%.
