Prataap Snacks Limited has received an intimation of a draft letter of offer regarding an open offer from Authum Investment & Infrastructure Limited. Along with Ms. Mahi Madhusudan Kela, acting as a person in concert, Authum aims to acquire up to 62,98,351 fully paid-up equity shares, which represents 26.01% of the company’s voting share capital.
The offer price is set at ₹864 per share, representing a 23% discount compared to the current market price (CMP) of ₹1,123.75. This values the total acquisition at approximately ₹544.18 crore. The open offer is being made in accordance with SEBI’s Substantial Acquisition of Shares and Takeovers (SAST) Regulations, 2011, as part of a planned acquisition deal. Authum will acquire these shares in cash as part of its attempt to increase its stake in the company.
The open offer is a result of a share purchase agreement (SPA) between Authum, Ms. Kela, and the current promoters of Prataap Snacks, who together hold 46.87% of the voting share capital. The successful completion of this transaction would lead to a significant change in control of Prataap Snacks.
The timeline for the open offer process has been laid out, starting with the submission of the draft letter to SEBI on October 11, 2024, and expected closure by December 2024. The offer is subject to statutory approvals, including the Competition Commission of India (CCI), and will follow a tendering process in compliance with SEBI regulations.
