(Reuters) – India’s competition regulator, on Tuesday, approved the acquisition of a 72.8% stake in snack maker Prataap Snacks by Authum Investment & Infrastructure and investor Mahi Madhusudan Kela.
In September, the two investors acquired a majority 46.85% stake in the Indore-based company from venture capital firm Peak XV Partners, and announced an open offer for an additional 26% stake.
Prataap, best known for its Yellow Diamond brand of chips, competes with Pepsi’s Lay’s brand and other snack makers in a market where local, unorganised food sellers still dominate the fried chips segment.
The company, which has a market capitalization of about $317.85 million, sells over 12 million packets of its salty snacks daily, which are priced as low as 5 rupees (6 U.S. cents), according to its website.
Rival snack maker Haldiram’s was in talks to acquire a majority stake in the company, with Peak XV partners looking to offload its stake, Reuters reported in January.
($1 = 85.5750 Indian rupees)
(Reporting by Ananta Agarwal; Editing by Vijay Kishore)
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