On September 26, 2024, Authum Investment and Infrastructure Limited (AIIL) made a strategic move to expand its portfolio with the acquisition of a 42.31% stake in Prataap Snacks Limited (PSL), a leading Indian snack food company. This acquisition is part of AIIL’s broader investment strategy, aimed at diversifying its interests in sectors that promise stability and growth potential.

The acquisition will be completed through a Share Purchase Agreement (SPA) with Mahi Madhusudan Kela and other sellers, including Peak XV Partners Growth Investment Holdings I, Peak XV Partners Growth Investment II, and Sequoia Capital GFIV Mauritius Investments. These entities collectively hold 46.85% of Prataap Snacks’ equity shares. Upon the successful completion of this transaction, AIIL will hold 42.31% of the total equity shares in PSL, making the snack company an associate entity of AIIL.

In tandem with this acquisition, AIIL has also announced an open offer to the public shareholders of Prataap Snacks, targeting 62,98,351 equity shares, which constitute 26% of the voting share capital. This offer is priced at ₹864 per equity share, allowing public shareholders to divest their holdings at a competitive price.

Prataap Snacks Limited, founded in 2009, is a prominent player in India’s snack food industry, with a diverse product portfolio that includes potato chips, extruded snacks, and namkeen. Over the years, PSL has built a strong presence in the Indian market, catering to the rising demand for packaged snack foods across the country.

Financially, PSL has demonstrated strong performance in recent years. As of March 31, 2024, the company's turnover stood at ₹1,617.93 crore, with a net worth of ₹728.75 crore. Despite the acquisition, AIIL and its leadership have expressed their commitment to ensuring the sustained growth and expansion of PSL, with plans to maximize value creation for all stakeholders.

The acquisition process, as outlined in the SPA, is expected to be completed within six months, subject to the satisfaction of various conditions precedent. This includes receiving necessary governmental and regulatory approvals, as mandated by the Securities and Exchange Board of India (SEBI).

This transaction will mark a significant milestone in AIIL's strategy to diversify its portfolio, particularly in the fast-moving consumer goods (FMCG) sector, which continues to show robust growth in India. AIIL views this acquisition as an opportunity to nurture a strong business that has already established a foothold in the competitive snack food industry.

Additionally, the financial sector is closely following this acquisition as it falls under the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (SAST Regulations), and SEBI Listing Obligations. The company’s ability to navigate these regulations and successfully close the acquisition will be a critical factor in the completion of the deal.

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With the acquisition of Prataap Snacks Limited, Authum Investment and Infrastructure Limited is positioning itself as a key player in the evolving landscape of Indian investments, particularly in the FMCG sector. As the company continues to expand, stakeholders and investors can expect further developments that align with AIIL’s strategy of long-term, sustainable growth.

The snack food industry in India is experiencing a boom in demand, driven by changing consumer preferences and increasing disposable income. With the acquisition of PSL, AIIL is now well-positioned to leverage this growth and create value for shareholders, partners, and customers alike. Keep an eye on future updates as this acquisition moves closer to completion.