Praatap Snacks IPO 47 times oversubscribed on the last day of issue

On the last day of offer, Prataap Snack initial public offer (IPO) got oversubscribed by 47.31 times till 1800 hours, NSE data showed.

The three-day IPO which ended today received bids for 17.16 crore shares as against the total issue size of 36,27,518 shares. 

For the IPO, the company had set a price band of Rs 930-938. 

Before the issue, the company had raised Rs 143.4 crore from its anchor investors, which included Small Cap World Fund Inc, Fidelity Funds, Goldman Sachs India Ltd, HDFC Trustee Co. Ltd and SBI Life Insurance Co Ltd as participants.

The company which sells products under the brand name "Yellow Diamond", is planning to raise around Rs 480 crore with this IPO. Out of Rs 480 crore, Rs 200 crore will be through fresh equity issue and the remaining amount will be through offer for sale. 

The company in a statement had said that the net proceeds of the fresh issue will be utilised for: (a) repayment of debt; (b) funding capital expenditure requirements in relation to expansion and modernisation at certain existing facilities; (c) investment in subsidiary, Pure N Sure, for repayment of debt; (d) marketing and building activities; and (e) general corporate purposes.

However, before the IPO, the analysts had given mixed ratings considering it as "highly valued".