Last Updated: February 22, 2024, 10:40 IST
ITC is seeking to purchase a 47 p.c stake in Prataap Snacks
Prataap Snacks additionally sells conventional Indian namkeens beneath the Avadh model.
Prataap Snacks share value, ITC share value: ITC is seeking to purchase a 47 per cent stake in Prataap Snacks, which makes the favored “Yellow Diamond Chips”, the Economic Times reported on February 22.
This transfer is seen as a strategic step by ITC to develop its presence in regional markets, leveraging Prataap’s robust foothold in these areas.
Prataap Snacks additionally sells conventional Indian namkeens beneath the Avadh model.
Prataap is finest recognized for Yellow Diamond chips and conventional Indian namkeen beneath the Avadh model. Listed Bikaji Foods, one other massive snacks firm, had additionally seemed on the deal however these negotiations additionally fizzled out, mentioned folks within the know.
Shares of Prataap Snacks rose as a lot as 14.29 per cent in Thursday morning commerce to Rs 1,344.65 apiece, the best degree since January 24. It pared good points to commerce 9.29 per cent increased at Rs 1,285 apiece as of 9:23 am. This compares to a 0.03 per cent decline within the NSE Nifty 50.
The determination to discover the acquisition comes after Prataap Snacks’ discussions with Haldiram’s, one other main participant within the snacks trade, fell via as a result of a mismatch in valuation, the ET report mentioned. Similarly, negotiations with Bikaji Foods, one other snacks firm, additionally didn’t materialise.
The transaction if profitable will set off an open provide for an extra 26% of the Indore-based firm, which has been a laggard ever since its inventory market debut in 2017 when it listed at a 33% premium. Prataap ended 1% down at Rs 1,174.45 for a market worth of Rs 2,802.19 crore on Wednesday.
In December 2023, Prataap Snacks reported internet gross sales of Rs 408.31 crore, an 8.08 p.c improve from the yr-in the past interval. Its internet revenue for the December quarter got here in at Rs 10.79 crore, important development of 215.39 p.c in comparison with December 2022.
ITC’s strategic strategy, referred to as the ITC Next technique, goals to develop a future-prepared product portfolio that caters to evolving client preferences.
With the acquisition of Prataap Snacks, ITC may leverage its robust distribution community to advertise Prataap’s model portfolio, additional strengthening its place available in the market.
At 10:15 am, shares of ITC Ltd. rose as a lot as 0.58 per cent to Rs 405.70 apiece.
On February 21, Prataap Snacks closed 1.7 per cent down at Rs 1,171 and ITC ended 0.7 per cent decrease at Rs 403.35.
Disclaimer:Disclaimer: The views and funding ideas by consultants on this News18.com report are their very own and never these of the web site or its administration. Users are suggested to test with licensed consultants earlier than taking any funding choices.
