Prataap Snacks shares jump 3% amid buzz of new owners exploring exit options; here's what company says

The shares of Prataap Snacks jumped more than 3 percent on September 3 after a report by the Economic Times said that its key shareholders like Authum Investments and ace investor Madhusudan Kela's family are exploring options to exit the Indore-based snacks-maker, although the company denied the claims.

The Economic Times had reported that these shareholders have reached out competitors like Haldiram, Advent-backed DFM Foods and ITC, as well as private equity funds to gauge their interest in buying out a controlling stake in Prataap Snacks or exploring a merger.

Prataap Snacks later issued a clarification, strongly denying the claims. "The contents are speculative in nature and not based on facts. Neither the Company nor its Promoters, including Authum Investment and Infrastructure Limited, are exploring any exit options," it said in an exchange filing.

"Further, the Company continues to pursue its business growth strategy with a focus on distribution expansion, product innovation, and profitability improvement. Our Promoters remain fully committed to the business and are confident in the strength of our brands and wide distribution footprint," it added.