Prataap Snacks Limited – Initial Public Offer to open on Friday

New Delhi, September, 15 2017: Prataap Snacks Limited ("Company" or "Issuer") proposes to open on Friday, September 22, 2017, an Initial Public Offering of Equity Shares of face value of Rs. 5 each (“Equity Shares”) for cash at a price including a share premium (the “Offer”) comprising a fresh issue of Equity Shares aggregating up to Rs. 2,000 million (the “Fresh Issue”) and an offer for sale of up to [●] Equity Shares by the Selling Shareholders, comprising an offer for sale of up to 3,005,770 Equity Shares including up to 369,451 Equity Shares by Sequoia Capital GFIV Mauritius Investment (“SCG”) and up to 94,266 equity shares by Sequoia Capital India Growth Investment Holdings I (“SCIGIH”) (collectively referred to as the “Investor Selling Shareholders”) up to 1,317,093 Equity Shares by SCI Growth Investments II (“SCI”) , upto 183,740 Equity Shares by Arvind Mehta, up to 139,200 Equity Shares by Naveen Mehta, up to 139,200 Equity Shares by Arun Mehta, up to 361,920 Equity Shares by Rajesh Mehta, up to 66,820 Equity Shares by Kanta Mehta, up to 77,950 Equity Shares by Premlata Kumat, up to 22,270 Equity Shares by Swati Bapna, up to 116,930 Equity Shares by Apoorva Kumat and up to 116,930 Equity Shares by Amit Kumat (together, the “Promoter Selling Shareholders”, and together with the Investor Selling Shareholders, the “Selling Shareholders”). The issue includes a reservation of up to 42,000 Equity Shares aggregating to Rs. [●] million for subscription by Eligible Employees (“Employee Reservation Portion”). An Employee Discount of Rs. 90 per Equity Share to the Issue Price will be offered to the Eligible Employees Bidding in the Employee Reservation Portion.

The PriceBand for the Issue is fixed from Rs. 930 to Rs. 938 per Equity Share. Bids canbe made for a minimum of 15 Equity Shares and in multiples of 15 Equity Sharesthereafter. The Bid/ Issue will close on Tuesday, September 26, 2017. TheAnchor Investor Bid/Issue Period, if any, shall be one Working Day prior to theBid/Issue Opening Date. 

The Companyand the Selling Shareholders may, in consultation with the Global Coordinatorsand Book Running Lead Managers (“GCBRLMs”) and the Book Running Lead Manager(“BRLM”), consider participation by Anchor Investors. The Anchor Investorsshall Bid during the Anchor Investor Bidding Date, i.e., one Working Day priorto the Bid/Issue Opening Date. 

The GCBRLMsto the Issue are Edelweiss Financial Services Limited and JM FinancialInstitutional Securities Limited. The BRLM is Spark Capital Advisors (India)Private Limited. 

The EquityShares offered through the RHP are proposed to be listed on the BSE Limited(“BSE”) and National Stock Exchange of India Limited (“NSE”). 

The Issue isbeing made through the Book Building Process in accordance with Regulation26(1) of the Securities and Exchange Board of India (Issue of Capital andDisclosure Requirements) Regulations, 2009, as amended (the “SEBI ICDRRegulations”), wherein at least 50% of the Net Issue shall be Allotted on aproportionate basis to Qualified Institutional Buyers (“QIBs”), provided thatthe Company and the Selling Shareholders in consultation with the GCBRLMs andthe BRLM may allocate up to 60% of the QIB Portion to Anchor Investors, on adiscretionary basis (the “Anchor Investor Portion”), out of which at leastone-third will be reserved for domestic Mutual Funds only, subject to validBids being received from domestic Mutual Funds at or above the Anchor InvestorAllocation Price, in accordance with the SEBI ICDR Regulations. 

The numberof Equity Shares representing 5% of the QIB Portion (excluding Anchor InvestorPortion) shall be available for allocation on a proportionate basis to MutualFunds only. The remainder of the QIB Portion shall be available for allocationon a proportionate basis to all QIB Bidders (other than Anchor Investors),including Mutual Funds, subject to valid Bids being received at or above theIssue Price. However, if the aggregate demand from Mutual Funds is less than 5%of the QIB Category, then all Mutual Funds may get full Allotment to the extentof valid Bids received above the Issue Price. 

Further, notless than 15% of the Net Issue shall be available for allocation on aproportionate basis to Non-Institutional Bidders and not less than 35% of theNet Issue shall be available for allocation to Retail Individual Bidders inaccordance with the SEBI ICDR Regulations, subject to valid Bids being receivedat or above the Issue Price. All potential investors, other than AnchorInvestors, are required to mandatorily use the Applications Supported byBlocked Amount (“ASBA”) process providing the details of their respective bankaccount which will be blocked by the Self Certified Syndicate Bank (“SCSBs”),to participate in this Issue.

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