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Sequoia Capital is likely to dilute its stake in Indore-based Prataap Snacks, with the latter readying for an initial public offering worth ₹500-550 crore. Sequoia had picked up a majority stake in the food company in 2011 for $30 million.
Prataap Snacks has hired JM Finance and Edelweiss as lead managers for its IPO. The company intends to discover the price through a book-building process, bankers close to the development told BusinessLine . “The process is on and it would be least six months before the Draft Red Herring Prospectus is filed. The IPO is further away,” one of the bankers said.
Prataap Snacks sells potato chips and other Indian savouries under the ‘Yellow Diamond’ brand. Recently, the Indore-based firm also forayed into the instant noodle segment.
According to the company’s filing with the Registrar of Companies (RoC), in 2013-14 its annual turnover stood at ₹446 crore, with a profit of ₹2.58 crore. And in 2012-13, the revenue and profit came in at ₹344 crore and ₹1.6 crore, respectively.
While Edelweiss declined to comment, emails sent to JM Finance and Prataap Snacks went unanswered.
According to sources, the company would use the proceeds for expanding its manufacturing facilities, foraying into newer markets and investing in new products.
The company, formed in 2003 by Amit Kumat, Apurva Kumat and Arvind Mehta at Palda, competes with home-grown brands such as Mumbai-based Chedda, Bikaji Foods, Parle and Balaji Wafers in the ₹50,000-crore Indian snacking industry.
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