Sequoia-backed Prataap Snacks gains 26% on listing day

Sequoia-backed Prataap Snacks Ltd made a strong debut on the stock markets on Thursday with its shares listing at a 33% premium to its issue price before paring gains on profit taking.

Shares of Prataap Snacks, which makes Yellow Diamond brand chips, began trading on the BSE at Rs 1,250 apiece compared with its issue price of Rs 938 apiece, stock exchange data showed.

The stock traded between Rs 1,317.05 and Rs 1,137.00 before closing at Rs 1,178.30, still up 25.6% from the issue price. The closing price gives the company a market valuation of Rs 2,763.5 crore.

The BSE's 30-stock benchmark Sensex lost 0.25%.

The strong start comes after the initial public offering of Prataap Snacks was subscribed 47 times last month, thanks to institutional as well as non-institutional investors.

Prataap Snacks, which counts Sequoia Capital as its venture capital backer, was seeking a valuation of Rs 2,200 crore through the IPO. Sequoia had invested about Rs 265 crore in multiple tranches with its first investment dating back six years.

The total IPO size was Rs 482 crore and resulted in a 21.9% stake dilution on a post-issue basis.

The company had first filed its IPO proposal with the Securities and Exchange Board of India (SEBI) in October last year. It filed a revised proposal on 21 June when Sequoia got reclassified as a promoter after it converted the compulsorily convertible preference shares into equity shares, thereby changing the overall shareholding structure. It received SEBI nod for the IPO on 11 August.

Edelweiss, JM Financial and Spark Capital managed Prataap Snacks’ IPO.

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