About The Company:
Prataap Snacks (Headquartered in Indore, Madhya Pradesh) is a leading Snacks manufacturer in India.They are one of the top six Indian snack food companies in terms of revenues and among the fastest growing companies in the Indian organised snack market between 2010 and 2017.They are present in three major savoury snack food categories in India and all the products are sold under the Yellow Diamond brand.
Company has extensive distribution network,strategically located manufacturing facilities, and have focused their marketing and promotional activities to strengthen their product brands and establish the Yellow Diamond brand across India.
As of March 31, 2017, the distribution network included 205 super stockists across 26 States and one Union Territory in India and over 3,400 distributors.
Company’s diversified product portfolio includes three categories:
Extruded Snacks.
Extruded snacks are processed, reconstituted and shaped potato or cereal based snacks.Extruded snacks may be flavoured or unflavoured. It includes puffed snacks.The Extruded Snacks products are divided into two sub-categories: (i) Shaped Extruded Snacks, which includes Puffs,Rings and Pellets products; and (ii) Random Extruded Snacks, which includes their Chulbule product.
Chips.
Chips include fried, sliced chips or crisps made from potatoes, hummus, lentils etc. It includes flavoured and unflavoured chips, and may be standard chips, thick-cut and / or crinkle-cut. Potato Chips were introduced by the Company in Fiscal 2010.
Namkeen.
Namkeen are a type of traditional savoury Indian snack which includes products such as moong dal, masala or fried nuts, sev and bhujia. Namkeen under the Yellow Diamond brand was launched by the Company in Fiscal 2012,
Company has set up a pan-India distribution network supported by strategically located manufacturing facilities. Company’s wide network of super stockists and distributors is supported by the large team of sales representatives and arrangements with various modern retail outlets.
Management Team:
- Mr.Arvind Mehta (Designation : Chairman and Executive Director)
- Mr.Amit Kumat (Designation : Managing Director and Chief Executive Officer)
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TOP 10 Shareholders:
| Sr.No. | Shareholder Name | Number of Equity Shares held | Percentage of Equity Share Capital % |
|---|---|---|---|
| 1. | SCI (Sequoia Capital) | 9,710,544 | 46.71 |
| 2. | SCG (Sequoia Capital) | 2,723,856 | 13.10 |
| 3. | Rajesh Mehta | 1,043,376 | 5.02 |
| 4. | Naveen Mehta | 1,043,376 | 5.02 |
| 5. | Arvind Mehta | 743,424 | 3.58 |
| 6. | Arun Mehta | 710,976 | 3.42 |
| 7. | SCI-GIH (Sequoia Capital) | 694,992 | 3.34 |
| 8. | Amit Kumat | 692,928 | 3.33 |
| 9. | Apoorva Kumat | 664,992 | 3.20 |
| 10. | Premlata Kumat | 637,056 | 3.06 |
| Total | 18,665,520 | 89.79% |
Business Strengths of the Company:
- Innovation driven diversified product portfolio.
- Value proposition for consumers.(More Quantity for less price)
- Strategic supply chain for a pan-India distribution network.
- Successful track record and professional management.
Positives for the Company:
- Successful track record and Professional management Team.
- Pan India Distribution Network.
- Company witnessing very good growth.
- Strong presence in Northern and Western markets and is increasing penetration in the Southern markets.
- Plans to double its distribution network from the current 1.2 million outlets to compete with MNC competitors like PepsiCo.
- India’s salty snack market to be valued at more than $2 billion (Rs17,000 crore), and expects it to surpass sales of nearly $5 billion (Rs 35,801 crore) by 2020.
- Malabar Investments (Well Known Investment Group) picked up a 2.5% stake (Valuation Rs.2,000 crore) (Shares were allocated to Malabar at a price of Rs.938 per share).
- Deeper penetration in existing markets and explore select new territories.
- Expand product portfolio into healthier snacks segment and confectioneries.
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 |
|---|---|---|---|---|---|
| Revenue | 344.48 | 446.84 | 560.57 | 757.9 | 905.46 |
| Net Profit | 14.87 | 5.37 | 9.9 | 27.3 | 9.9 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 22nd September 2017 |
| Issue Closes on:. | 26th September 2017 |
| Issue Price | Rs.930 – 938 |
| Face Value | Rs.5 |
| Minimum Lot | 15 |
| Minimum Investment | Rs.14,070 |
| Issue Constitutes | 24.41% |
| Issue Size | Rs.481.94 cr |
| Market Cap | Rs.2000 cr |
| Listing at | NSE & BSE |
| Equity Shares Offered | 51,37,966 |
| Equity Shares Prior | 2,07,87,840 |
| Equity Shares after the issue | 2,29,20,036 |
Important Dates:
| Finalization of Basis of Alottment | on or Before 29th September 2017 |
| Initiation of Refunds | on or Before 3rd October 2017 |
| Credit of Equity Shares: | on or Before 4th October 2017 |
| Listing Date: | on or Before 5th October 2017 |
Subscription Details:
| (Subscription-Category-Wise (no. of times) Till time :05:30 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 1028363 | 0.99 | 1.63 | 76.89 |
| NII | 767147 | 0.035 | 0.063 | 101.1 |
| Retail | 1790008 | 0.435 | 1.52 | 7.61 |
| Employee | 42000 | 0.1421 | 0.51 | 1.45 |
| TOTAL | 3627518 | 0.501 | 1.21 | 46.95 |
IPO Valuation parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 4.77 | 196.64 | 4.32% | 114.66 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 25% |
