Private equity (PE) major Peak XV, formerly Sequoia Capital, has sold its entire stake of close to 47 per cent in Indore-based wafer maker Prataap Snacks (PSL) for Rs 847 crore to Authum Investment & Infrastructure and Mahi Madhusudan Kela.
As per the share purchase agreement, the Sanjay Dangi family-led Authum will acquire 10.2 million shares and Kela 1.1 million shares of PSL at Rs 746 apiece for a total outgo of Rs 846 crore. They will also make an open offer to acquire an additional 6.3 million shares at Rs 864 apiece for up to Rs 544 crore.
The open offer price, as well as the amount paid to Peak XV, is lower than the current market price of Rs 1,046 crore.
The deal provides an exit to Peak XV, which had first invested in the company in 2011 and then participated in multiple rounds of funding. PSL also gets new promoters, with the founding Mehta and Kumat families also looking for an exit, as per news reports. They currently hold less than 17 per cent.
Meanwhile, it gives investment firm Authum an entry into the Rs 42,695 crore domestic snacking market, which is expected to reach Rs 95,523 crore by 2032, as per Imarc Group.
Authum, a listed entity, is currently valued at nearly Rs 29,000 crore.
The Mumbai-based firm shot into the limelight in 2021 when it emerged as the top bidder for Anil Ambani’s Reliance Commercial Finance, the housing arm of Anil Ambani’s beleaguered Reliance Capital.
Authum had acquired Reliance Commercial Finance under the RBI’s debt resolution scheme, which was approved by the Supreme Court in August 2022.
Stock veteran Sanjay Dangi’s wife, Alpana Dangi, is the promoter and controlling shareholder of Authum with a 65.3 per cent stake, and another 6.17 per cent is held by group entity Mentor Capital.
Though Sanjay doesn’t hold any shares in a personal capacity in Authum, he is on the firm’s board as a non-executive and non-independent director.
As per its website, Authum Investment is engaged in investment in shares and financing activities. In FY24, Authum reported a net profit of Rs 2,924 crore.
Sanjay has faced several regulatory actions in the past. In an interim order in December 2010, Sebi had barred Dangi for alleged stock price manipulation of real estate firm Ackruti City. More recently, in August 2021, Sebi had disposed of a show-cause notice issued to Sanjay and a few others without imposing any penalty, as the regulator couldn’t find enough material on record to establish guilt. The matter pertained to allegations that the Dangi group influenced the price rise in the scrip of Murli Industries. The matter was also referenced by the IT Department to Sebi in 2009.
First Published: Sep 27 2024 | 8:13 PM IST
By Companies
Source: Companies