The shares of savory snack manufacturers gained up to 14 percent after ITC likely to acquire a 47 percent stake in the company.
With a market capitalization of Rs 3,095.30 crore, the shares of Prataap Snacks Ltd were trading at Rs 1287.30 per share, increasing around 9.63 percent as compared to the previous closing of Rs 1,174.45 apiece.
According to money control, ITC looking to acquire a 47 percent stake in Prataap Snacks Ltd. In December 2023, the promoter of the company was in the conversation to sell a controlling stake in the snack makers.
Furthermore, if ITC gets a part in the firm, it will be a strategic move to increase its influence in regional markets by utilizing Prataap’s strong presence in these areas.
Looking into the company’s performance, Prataap Snacks Ltd’s revenue increased by 18 percent from Rs 1,397 Crore in FY21-22 to Rs 1,653 Crore in FY22-23. During the same period, net profits increased by 566 percent from Rs 3 crore to Rs 20 crore.
The company has a nationwide manufacturing & distribution footprint with 13 manufacturing facilities. The company has a diverse product portfolio of Over 125 SKUs across Potato Chips, Extruded Snacks, Namkeen, and Sweet Snacks.
Prataap Snacks Ltd’s recent shareholding pattern, The Promoters of the company own 64.30 percent while Retail shareholders own a 19.18 percent stake in the company and Foreign Institutional Investors own a 5.40 percent stake.
PSL now services 27 Indian states and 4 union territories, with access to 2.20 million retail locations. The Company’s distribution network has grown from 2.02 million outlets in FY22 to 2.18 million in FY23, with plans to expand further into existing areas.
PrataapSnacks Limited (PSL) is an Indian snack food company that manufactures and markets a variety of product varieties, including potato chips, extruded snacks, and namkeen (traditional Indian snacks) under the Yellow Diamond brand and sweet snacks under the Rich Feast brand.
Written by:- Abhishek Singh
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