Stock of this packaged foods company has zoomed 75% in 2 months

Shares of potato chip maker Prataap Snacks were up 4 per cent at Rs 1,426 on the BSE in Friday’s intra-day trade and have surged 15 per cent in the past two days on reports that FMCG giant Haldiram's is in talks to acquire a majority stake in the company.

As per a Reuters report on Thursday, the Indian snacks maker Haldiram's is considering a majority stake in its listed rival Prataap Snacks, which is valued at $350 million. This is aimed to expand its presence in the potato chip market.

The talks are at an early stage and the valuation has not been discussed, though it could be at a premium to Prataap's stock price. Haldiram's is eyeing a majority stake of at least 51 per cent but a final number has not been decided, Reuters report said quoting sources.

The stock of the packaged foods company hit an intra-day high of Rs 1,450, which it had touched in April 2018.

In the past two months the stock has zoomed 75 per cent. Prataap made its stock market debut in October, 2017 and issued its shares at Rs 938 per share.

Post the sharp surge, the stock erased gains and dipped nearly 1 per cent lower at Rs 1,360, as of 09:28 am. The BSE Sensex was up 0.9 per cent.

Last month, on December 18, 2023, Prataap Snacks had clarified that the company is not in negotiations with potential buyers for sale of the promoters' controlling stake in the company.

Meanwhile, on November 20, the promoters of Prataap Snacks had sold 1.3 million equity shares, representing 5.45 per cent stake in the company, via the open market through a block deal.

Prataap Snacks offers multiple variants of products across categories of potato chips, extruded snacks, namkeen (traditional Indian snacks) under the popular and vibrant Yellow Diamond and Avadh brands.

It also has a separate range of sweet snacks under the distinctive “Rich Feast” brand.