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( As on 06/09/2017 00:14) Prataap Snacks' Rs 250-cr IPO to hit markets soon

Prataap Snacks expects to launch its Rs 250-crore initial public offer (IPO) in the next couple of months, reported PTI.

"We are in discussions with merchant bankers on the timing. By October-November we should definitely be listed," Prataap Snacks managing director and chief executive Amit Kumat said.

The company had filed its IPO papers last year with the Sebi which has been approved later.

The company aims to use the proceedings from the Rs 250 crore IPO to expand the capacity of chips making plant by 50 per cent and double that of namkeens, apart from fully retiring debt on its books, which is around Rs 43 crore, marketing and brand building activities, chief financial officer Sumit Sharma said.

The Sequoia Capital-backed company, which clocked a revenue of Rs 903 crore last fiscal, also plans to enter the sweet snacks category shortly, according to Kumat.

The company, which makes products under the Yellow Diamond brand, gets 80 per cent of its sales from the Rs 5 pack but expects its share to reduce in the next five years.

"It used to be 90 per cent but it has come down to 80 per cent. With lot of A&B class outlets shifting to Rs 10 packs, I think in five years' time, close to 60 per cent of our revenue should come from Rs 5 packs," Kumat said.

The organised snack category is estimated to be Rs 22,000 crore growing at 10-11 per cent.

Edelweiss, JM Financial and Spark Capital will be managing the issue