Prataap Snacks rallies 12% on Avadh Snacks takeover

Prataap Snacks rallied as much as 12 per cent on early Thursday after the company said it will acquire 80 per cent stake in Gujarat-based Avadh Snacks for a consideration of Rs 148 crore.

This would be through a combination of primary and secondary investment, Prataap Snacks said in a statement.

Prataap Snacks MD and CEO Amit Kumar said: "Our acquisition of Avadh will help us accelerate our growth and deepen our presence in the key market of Gujarat."


Avadh Snacks is into manufacturing of namkeens under brand name Avadh. With presence in Gujarat, it's expanding in Maharashtra and Rajasthan.

The stock was up 11.55 per cent at Rs 1,197.50 at around 9.30 am. The BSE Sensex rose 68 points, or 0.18 per cent, at 38,354.23.

Brokerage firm Sharekhan in its report on August 8 said, “With a rise in capacity, new products and a wider reach, we expect revenue and earnings of Prataap Snacks to clock a CAGR of 17 per cent and 25 per cent, respectively, over FY18 to FY20.”