Prataap Snacks IPO (DHRP IPO Review Share Price Date)

Below is the Review of Prataap Snacks IPO (Also Prataap Snacks IPO Share Price, IPO Date, DRHP etc). Prataap Snacks IPO is still in the beginning stages and the company has filed a Draft Red Herring Prospectus with the SEBI. Prataap Snacks looks to raise around Rs.700 Crore through this IPO. The IPO from Prataap Snacks is one of the many companies going for a Public Issue in the coming months, along with Green Signal Bio IPO and also Majestic Research IPO.

Below, the Draft Prospectus of Prataap Snacks is available for Download in PDF Format. Prataap Snacks Limited was incorporated as Prataap Snacks Private Limited as a private limited company under the Companies Act, 1956. Pursuant to a special resolution passed by our Shareholders on September 9, 2016, our Company was converted into a public limited company and the name was changed to Prataap Snacks Limited and a fresh certificate of incorporation consequent upon change of name was issued on September 19, 2016, under Companies Act 2013.

Draft Red Herring Prospectus : Prataap Snacks IPO

Prataap Snacks Draft Offer Document Download

Prataap Snacks IPO Status Review

Issue Capital (approx) Rs.420 Crore
Issue Date Sept 22nd
Share Price Rs.920-930
Shares for Sale 29,80,000

Promoters Details : Prataap Snacks IPO

The Promoters of Prataap Snacks Ltd are Arvind Mehta, Amit Kumat, Apoorva Kumat, Rajesh Mehta, Naveen Mehta, Arun Mehta, Kanta Mehta, Rita Mehta, Premlata Kumat, Sudhir Kumat, Swati Bapna, Rakhi Kumat and Sandhya Kumat.

As on the date of this Draft Red Herring Prospectus, the Promoters hold 8,286,240 Equity Shares in the aggregate, which is equivalent to 43.49% of the pre-Issue issued, subscribed and paid-up Equity Share capital of the Company.

Competitive Landscape : Prataap Snacks IPO

In the organised snacks segment the market has been historically dominated by major FMCG companies such as PepsiCo, ITC, Parle Products, etc. PepsiCo, with its Lays’ and Kurkure brand has dominated the chips and extruded snacks market with close to 50% market share in each of the segments.

A large portfolio of products, innovative flavours, regular new product launches, aggressive advertisements and promotions, celebrity endorsements, and large retailer margins have been instrumental in PepsiCo gaining dominance in these categories.

Top 10 Shareholders : Prataap Snacks IPO

The top 10 shareholders of Prataap Snacks two years prior to the date of filing of this Draft Red Herring Prospectus, as part of the IPO are as follows:

Prataap Snacks IPO Top 10 Shareholders

Type of Public Issue : Prataap Snacks IPO

The Issue is being made through the Book Building Process, in compliance with Regulation 26(1) of SEBI ICDR Regulations, wherein not more than 50% of the Issue shall be allocated on a proportionate basis to QIBs, provided that Prataap Snacks in consultation with the GCBRLMs and the BRLM may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis.

One-third of the Anchor Investor Portion shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price.

5% of the QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Issue Price.

Further, not less than 15% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Issue shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Issue Price.

Indian Packaged Snack and Savouries Market : Prataap Snacks IPO

Packaged foods include ready-to-eat / cook foods that are packed and sold to consumers. They are primarily aimed at convenience and usually undergo a certain degree of processing to increase shelf life, taste, stability, etc.

It includes food items like bakery products, canned / dried processed food, frozen processed food, meal replacement products, dairy products, snacks, confectionaries, beverages, etc.

The ₹500 billion Indian snacks market is characterised by a large number of unorganised players across all product segments.

This stems from each type of snack being very specific to each region, and hence, many small companies used to cater to that market. These players have a slim portfolio of products, usually of a single category and in many cases only provide traditional snacks items.

They also operate in a small geographic range confined to a single state or city. Apart from this, there is a large presence of players that supply fresh products in chips and traditional Indian snacks categories.

Analysis of Extruded Snacks Market in India : Prataap Snacks IPO

Extrusion technologies have an important role in the food industry as an efficient manufacturing process. The products developed by this process are known as extruded snacks and they differ in colour, shape, and aroma.

Extruded food products are mainly corn flour and potato-based but a combination of flours can also be used. Fast-paced lifestyle, high disposable income, rising urbanisation, and transforming food culture have attributed to the growth and demand of the Indian snacks market, including extruded snacks.

Closing Details : Prataap Snacks IPO

There are very few Food Packing companies that have gone public in India, in the recent years. Pratap Snacks IPO is like a breeze of fresh air in the Indian IPO market filled with Tech and Pharma Companies. Based on the Red Herring Prospectus, the capital being raised by Prataap Snacks through the IPO is not a huge amount and we can expect it to be over subscribed.