Prataap Snacks Limited IPO – Company Profile, IPO Date, Price Band, Analysis
Prataap Snacks Limited – Indore, Madhya Pradesh based Indian Snack Food Company is planning to raise INR 531.94 (250 crores Fresh Issue + 281.94 crore OFS) crore via initial public offer (IPO).
Prataap Snacks Limited – Company Profile
- Incorporated in the year 2009, Prataap Snacks Limited is Madhya Pradesh based Indian Snack Food Company.
- The Company sells products under the brand name Yellow Diamond.
- Prataap Snacks was one of the top six Indian snack food companies in terms of revenues in 2016, and among the fastest growing companies in the Indian organized snack market between 2010 and 2016.
Working Area
Prataap Snacks has a diversified product portfolio including western and traditional snacks. The Company manufactures and sells its snacks under 3 major savory snack food categories:
- Chips – Fried, sliced chips or crisps made from potatoes, hummus, lentils.
- Extruded Snacks – Processed, reconstituted and shaped potato or cereal-based snacks. This includes (1) Puffs, (2) Rings, (3) Pellets and (4) Chulbule products.
- Namkeen – Traditional savoury Indian snack which includes products such as (1) Moong dal, (2) Masala or fried nuts, (3) sev and bhujia.
Distribution Network
The Company has pan-India distribution network supported by strategically located manufacturing facilities. As of March 31, 2017, the company’s distribution network included 205 super stockists across 26 States and 1 Union Territory in India and over 3,400 distributors.
Manufacturing Facilities
- Prataap Snacks Limited own and operate 3 manufacturing facilities, 1 located at Indore and the other 2 located at Guwahati, Assam.
- In addition, as of the date of this Draft Red Herring Prospectus, the company engaged two facilities on contract manufacturing basis, located in Bengaluru, Karnataka and at Kolkata, West Bengal.
Company Promoters
- Amit Kumat
- Arvind Mehta
- Apoorva Kumat And
- SCI Growth Investments II
IPO Opening / Closing Dates & Listing
IPO Details – Issue Price, Minimum Bid and Other
Financial Performance
Revenues
The Company shows steady revenue growth in recent years. Top-line has been increasing regularly for the last 5 years and jumped from INR 344.48 crore in FY 2013 to INR 905.50 crore for the period ended FY 2017.
Profits
Though the company has shown steady growth in revenue, the company fails to register steady profit growth in those 5 years. Starting from INR 13.16 crore of profits in FY 2013, the company’s earnings were INR 9.89 crore in FY 2017.
CONCLUSION –
Considering company’s valuation and financial parameters, FinBlab recommends NEUTRAL ratings on Prataap Snacks IPO for the time being.
Previous IPO – SBI Life Insurance Company Ltd
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