Prataap Snacks Ltd, which sells potato crisps and a variety of savouries under the brand name Yellow Diamond, on Friday said it will launch its initial public offering (IPO) on 22 September.
At the upper end of its price band of Rs930-938, the share sale will raise around Rs482 crore. The IPO will close on 26 September.
The IPO will see a fresh issue of Rs200 crore. The proceeds from the fresh issue will be used by the company for repaying borrowings, funding capital expenditure requirements for setting up new production lines, modernization of existing manufacturing facilities, and investment in subsidiary Pure N Sure, and marketing and brand-building activities.
The promoters and investors will collectively sell around 3 million shares in the share sale. Sequoia Capital plans to sell around 1.78 million shares, which at the upper end of the price band will fetch the venture capital firm about Rs167 crore.
Sequoia Capital currently holds 63.15% of Prataap Snacks. It has pumped a total of Rs265 crore into Prataap Snacks since it first invested in the company in 2011. In June 2016, Aditya Parekh-led private equity firm Faering Capital invested Rs45 crore in the company.
Prataap Snacks has appointed Edelweiss Financial Services Ltd, JM Financial Institutional Securities Ltd and Spark Capital Advisors (India) Pvt. Ltd to manage its public offering.
Established in 2009, Prataap Snacks is based in Indore. In the fiscal 2016-17, the company reported a revenue of Rs903.91 crore, up 19.4% from a year ago. The company reported a profit of Rs9.8 crore in 2016-17, as against a profit of Rs27.3 crore in the previous year.
Earlier this month, Mint reported Prataap Snacks has raised Rs50 crore in a pre-IPO round from public markets investor Malabar Investments, which picked up a 2.5% stake in the company.
This article was first published on LiveMint.com