Prataap Snacks to Acquire FLOP Food Processing for Rs 16.5 Cr

Prataap Snacks Limited (NSE: DIAMONDYD | BSE: 540724), the company behind the popular Yellow Diamond snack brand, has announced multiple strategic decisions alongside its Q1 FY27 unaudited financial results following its Board meeting held on August 1, 2026. The company approved a strategic acquisition, promoter reclassification requests, ESAR grants, and the reappointment of its top leadership.

Board Approves Q1 FY27 Financial Results

The Board approved the unaudited financial results for the quarter ended June 30, 2026. The financial statements were accompanied by a Limited Review Report carrying an unmodified opinion from the statutory auditors. However, the announcement document does not include the detailed financial figures.

Prataap Snacks to Acquire RLOP Food Processing for Up to ₹16.5 Crore

One of the key announcements was the approval to acquire 100% of the equity share capital of RLOP Food Processing Private Limited for a cash consideration of up to ₹16.50 crore.

According to the company, the acquisition is a strategic move to support its proposed Greenfield manufacturing project. RLOP Food Processing currently holds government-allotted leasehold land that Prataap Snacks intends to utilize for the new facility.

Key Details of the Acquisition

• Target Company: RLOP Food Processing Private Limited
• Industry: Food Processing
• Acquisition Stake: 100%
• Transaction Value: Up to ₹16.50 crore
• Mode of Payment: Cash
• Expected Completion: On or before September 15, 2026
• Related Party Transaction: No
• Commercial Operations: The target company has not yet commenced business operations and reported no revenue over the past three financial years.

The acquisition is expected to strengthen Prataap Snacks’ long-term manufacturing capacity and support future expansion plans.

Promoter Reclassification Approved

The Board also approved requests from six promoter-category shareholders seeking reclassification from the “Promoter” category to the “Public” category, subject to approvals from the stock exchanges and shareholders, as required under SEBI regulations.

The promoters seeking reclassification are:

• Arvind Mehta
• Naveen Mehta
• Arun Kumar Mehta
• Rita Mehta
• Kanta Mehta
• Rajesh Kumar Mehta

The Board noted that these individuals no longer participate in the company’s management or day-to-day operations, hold no special rights, are not represented on the Board, and do not exercise control over the company.

Employee Stock Appreciation Rights (ESARs)

To strengthen employee ownership and retention, the Board approved:

• Allotment of 19,428 equity shares under the ESARP 2018 scheme.
• Grant of 50,906 Employee Stock Appreciation Rights (ESARs) to eligible employees.

The ESARs carry an exercise price of ₹1,159 per ESAR and may be exercised within three years from the date of vesting. The company also extended the exercise period for certain previously granted ESARs to benefit eligible employees.

Leadership Continuity with Five-Year Reappointments

The Board approved the reappointment of two senior executives, subject to shareholder approval:

Amit Kumat Reappointed as Managing Director & CEO

• Effective From: September 23, 2026
• Tenure: Five years (until September 22, 2031)

Mr. Amit Kumat has over 30 years of experience in the snacks industry and has been instrumental in the company’s growth.

Apoorva Kumat Reappointed as Executive Director

• Effective From: November 2, 2026
• Tenure: Five years (until November 1, 2031)

Mr. Apoorva Kumat also brings more than three decades of industry experience and will continue to support the company’s strategic initiatives.