Indian snack manufacturer Prataap Snacks Ltd., the maker of Yellow Diamond potato chips, said its initial public offering will hit the markets in two months as it looks to expand operations and enter newer categories.
The company, which has filed its draft prospectus for an IPO, expects to raise Rs 250 crore (40 million USD )from fresh issue. The proceeds will be used to repay debt, and for marketing and brand building, according to its prospectus. The IPO also comprises an offer for sale by the promoters and investor Sequoia Capital.
The company plans to launch sweet snacks before Diwali and also enter healthier options.
Amit Kumat, managing director and chief executive officer of Prataap Snacks:
“We will launch quinoa, lentil and vegetable chips,”
The Indore-based company is looking to increase penetration in the north and the south, he said. Potato chips category is growing at 25 percent and Kumat does not foresee any growing challenges.
“The category didn’t grow as expected as the potato crop was not good in 2013-14 and 2014-15. But it’s growing at a fast pace now.”