Authum Investment and Mahi Kela to Acquire ₹846.60 Crore Stake in Prataap Snacks, Owner of Yellow Diamond

Authum Investment & Infrastructure Limited and investor Mahi Madhusudan Kela are set to purchase a significant stake in Prataap Snacks Ltd., the parent company of Yellow Diamond, for ₹846.60 crore, according to a BSE filing on September 27.

The agreement includes acquiring a 46.85% stake from Peak XV Partners Growth Investments I, Peak XV Partners Growth Investment Holdings II, and Sequoia Capital GFIV Mauritius Investments. Following this announcement, Prataap Snacks shares were trading 0.14% lower at ₹1,052.25.

The share purchase agreement, dated September 26, 2024, stipulates that the acquirer will buy 1.02 crore equity shares at ₹746 each. Additionally, an open offer is being made to acquire a further 26% stake from the market for ₹544 crore, priced at ₹864 per share.

Prataap Snacks, based in Indore, produces a variety of snacks under the Yellow Diamond brand and operates 15 manufacturing facilities, reaching over 2.5 million touchpoints via more than 5,200 distributors.

This acquisition occurs amidst significant gains for competitors like Bikaji Foods International Ltd. and Mrs. Bectors Food Specialities Ltd., as investors anticipate increased consumption of light meals in India. The Indian snacks market is projected to grow to $10.6 billion by 2032, up from nearly $5.1 billion in 2023, according to IMARC.