SEQUOIABACKED PRATAAP SNACKS RAISES ₹50 CR IN PREIPO ROUND

Sequoia Capital-backed Prataap Snacks Pvt Ltd, which sells potato chips and a variety of spicy savouries under the brand name Yellow Diamond, has raised ₹50 crore in a pre-initial public offering (IPO) round from public markets investor Malabar Investments, said two people aware of the development.

The company, which filed its draft IPO papers with Sebi in June, plans to launch its initial share sale this month.

“Prataap Snacks had been in talks with investors for raising a pre-IPO round of funding of ₹50 crore. They have recently closed the deal with Malabar Investments,” said one of the two persons cited above, requesting anonymity, as he is not authorised to speak with the media.

Malabar Investments picked up a 2.5% stake in the company, which values Prataap Snacks at ₹2,000 crore ($312 million), he said. “Shares were allocated to Malabar at a price of ₹938 per share,” the person added.

Email sent to Prataap Snacks on Tuesday did not elicit any response. Malabar Investments declined to comment.

According to the company’s draft prospectus, it plans to raise ₹250 crore through a fresh issue of shares. The promoters and investors will sell 3 million shares in the share sale. Sequoia Capital plans to sell 1.78 million shares.

Sequoia Capital holds 63.15% in Prataap Snacks. It has pumped in a total of ₹265 crore into Prataap Snacks since it first invested in the company in 2011.

The proceeds from the IPO will be used by the company for repaying borrowings and funding capital expenditure requirements, among others.