Prataap Snacks-acquirer Authum in talks to raise over Rs 2,000 cr through QIP

The NBFC’s assets under management stood at Rs 13,426 crore across its investments, asset reconstruction company and lending operations. 

Authum Investment & Infrastructure Limited, an NBFC with business spanning strategic investments and lending, is planning to tap the equity markets to raise as much as Rs 2,000 to Rs 2,500 crore from institutional investors through a qualified institutional placement (QIP) offering, people aware of the matter told Moneycontrol. 

Authum is working with investment bank JM Financial on the proposed QIP fundraise, the people added.

“They have a board resolution to raise Rs 3,000 crore. But the deal size is likely to be closer to Rs 2,000 crore,” said one of the people mentioned above.

In the last 12 months, Authum's stock price rose by 86 percent to trade at Rs 1,503 on the BSE on February 18.

“The capital will be used for funding the acquisition and scaling of the various acquisitions that Authum is doing, like Prataap Snacks, which they are in the process of acquiring and for funding the growth of its lending business. Some money will also be used for investing in new business ventures such as alternative asset management,” the person added.

In September 2024, Authum Investment & Infrastructure Limited and investor Mahi Madhusudan Kela announced their intention to acquire a controlling stake in Prataap Snacks Limited, which manufactures and sells Indian savouries and sweets under the snack brand Yellow Diamond, for Rs 846.60 crore.

Authum will acquire 42.3 percent stake from Peak XV Partners, Growth Investment Holdings I, Sequoia Capital GFIV Mauritius Investments and Peak XV Partners Growth Investments II for a cash consideration of Rs764.5 crore.

Also Read: India's competition watchdog approves majority stake sale in Prataap Snacks

The company has also acquired around 97 percent of the consortium debt in listed tile maker NITCO from an ARC in April2024 for a consideration of Rs 225 crore. Under a restructuring scheme, Authum entered into binding agreements to convert part of the unsustainable debt component of approximately Rs 1,000 crore into equity, in October 2024. Under the restructuring scheme Authum will hold 44.6 percent stake in NITCO post a fresh fund infusion and conversion of debt.

Also, in October 2024, the company announced the acquisition of a 79.28 percent stake in India SME Asset Reconstruction Company Limited for Rs 176.8 crore.

Earlier in 2023, Authum had acquired the businesses of Reliance Commercial Finance and Reliance Home Finance from lenders of Reliance Capital.

Emails sent to Authum and JM Financial did not elicit a response till the time of publication.

Authum Investment Business

The NBFC’s assets under management stood at Rs 13,426 crore across its investments, asset reconstruction company and lending operations.

Its investment business, at a book size of Rs 11,264.9 crore, is the biggest business currently for Authum. It is also the firm’s oldest business operations.

On the lending side, its fresh lending portfolio stood at Rs 1,621.5 crore, while its portfolio of acquired loans stood at Rs 788.5 crore.

As part of its expansion plan, it plans to launch an alternative asset fund with a focus on real estate and turnaround opportunities.