Shares of Prataap Snacks Ltd. surged over 14% on Thursday after the media reported that ITC Ltd. was looking to buy a 47% stake in the company.
ITC is considering acquiring a 47% stake held by Peak XV Partners in popular Prataap Snacks Ltd., the Economic Times reported, citing people with knowledge about the matter.
Prataap Snacks makes the popular Yellow Diamond Chips and sells traditional Indian snacks under the Avadh brand.
Shares of the company rose as much as 14.29% to Rs 1,344.65 apiece, the highest level since Jan. 24. It pared gains to trade 9.29% higher at Rs 1,285 apiece as of 9:23 a.m. This compares to a 0.03% decline in the NSE Nifty 50.
It has risen 63.79% in past 12 months. Total traded volume so far in the day stood at 12 times its 30-day average. The relative strength index was at 58.28.
Out of three analysts tracking the company, two maintain a 'buy' rating, one recommends a 'hold,' according to Bloomberg data. The average 12-month consensus price target implies a downside of 8.1.%.
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