According to Prataap Snacks MD and CEO, Amit Kumat, the company should be listed by October or November.
The Indian snack manufacturer, which is part of the BCM Group, filed its IPO papers with the Securities and Exchange Board of India (SEBI) last year and expects to raise Rs 250 crore ($40m) from fresh issue.
Prataap’s CFO Sumit Sharma said the proceeds will be used to expand the capacity of its chips plant by 50% and double that of its namkeens plant (a traditional Indian snack), apart from fully retiring debt on its books, which is around Rs 43 crore ($6.7m)
Kumat added earnings will also be used for marketing and brand building activities as the company plans to launch sweet snacks in time for Diwali on October 19, 2017, as well as venture into the healthier snack category.
“We will be launching quinoa, lentil and vegetable chips,” said Kumat.
The Indore-based company is looking to increase penetration in the north and the south of India.
Kumat noted the potato chips category has finally picked up after the country experienced dismal potato crops between 2013 and 2015.
The category is now growing at 25% year-on-year and Kumat does not foresee any growing challenges.
India’s total snack category is estimated to be Rs 22,000 crore ($343m), growing at 10-11% year-on-year.
Prataap was founded in 2010 with a manufacturing facility for potato chips, before diversifying into extruded snacks and namkeens. The company acquired Prakash Snacks in 2012, which substantially increased its scale of operations.
The Sequoia Capital-backed company reported a revenue of Rs 903 crore ($14.9m) in its last fiscal.
Edelweiss, JM Financial and Spark Capital will manage Prataap’s IPO.