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Prataap Snacks Stock Up More Than 14% Following Reports That ITC Is Seeking A 47% Interest

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<p><strong>Share prices of Prataap Snacks and ITC:</strong> According to a February 22 Economic Times article, ITC is attempting to purchase a 47% share in Prataap Snacks, the company that produces the well-known “Yellow Diamond Chips.”</p>
<p><img decoding=”async” class=”alignnone wp-image-431184″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-prataap-snacks-stock-up-more-than-14-following-reports-that-itc-is-seeking-a-47-in.jpg” alt=”theindiaprint.com prataap snacks stock up more than 14 following reports that itc is seeking a 47 in” width=”1004″ height=”669″ title=”Prataap Snacks Stock Up More Than 14% Following Reports That ITC Is Seeking A 47% Interest 12″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-prataap-snacks-stock-up-more-than-14-following-reports-that-itc-is-seeking-a-47-in.jpg 510w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-prataap-snacks-stock-up-more-than-14-following-reports-that-itc-is-seeking-a-47-in-150×100.jpg 150w” sizes=”(max-width: 1004px) 100vw, 1004px” /></p>
<p>ITC is seen as taking a calculated risk by moving to strengthen its position in regional markets by taking use of Prataap’s established presence in these regions.</p>
<p>Traditional Indian namkeens are also sold by Prataap Snacks under the Avadh brand.</p>
<p>Prataap is well recognized for its Avadh brand of traditional Indian namkeen and Yellow Diamond chips. According to persons with knowledge, listed Bikaji Foods, a sizable snack firm, had also considered the sale, but those talks also ended in failure.</p>
<p>Prataap Snacks’ stock increased 14.29% in early Thursday trading to Rs 1,344.65, the highest price since January 24. As of 9:23 am, it reduced gains to trade 9.29% higher at Rs 1,285 each. This is in contrast to the NSE Nifty 50 declining by 0.03 percent.</p>
<p>According to the ET report, Prataap Snacks’ talks with Haldiram’s, a significant player in the snack business, broke down because of an imbalance in value, which prompted the decision to investigate the purchase. Likewise, talks with another snack firm, Bikaji Foods, also fell through.</p>
<p>If the deal goes through, there would be an open offer for an additional 26% of the Indore-based business, which has lagged since going public on the stock market in 2017 at a 33% premium. Prataap’s market value was Rs 2,802.19 crore on Wednesday, but it closed the day 1% down at Rs 1,174.45.</p>
<p>Prataap Snacks recorded net sales of Rs 408.31 crore in December 2023, up 8.08 percent from the same month the previous year. The company’s net profit for the December quarter was Rs 10.79 crore, a noteworthy increase of 215.39 percent over the same period in 2022.</p>
<p>The goal of ITC’s plan, dubbed the ITC Next strategy, is to create a portfolio of products that are ready for the future and can adapt to changing customer demands.</p>
<p>By acquiring Prataap Snacks, ITC will be able to further solidify its position in the industry by promoting Prataap’s brand portfolio via the use of its robust distribution network.</p>
<p>ITC Ltd.’s shares increased by as high as 0.58 percent to Rs 405.70 a share at 10:15 a.m.</p>
<p>On February 21, ITC finished 0.75 percent down at Rs 403.35, while Prataap Snacks closed 1.7% worse at Rs 1,171.</p>


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