Shares of Prataap Snacks jumped on Thursday after the company acquired an 80 percent stake in Avadh Snacks, strengthening its presence in Gujarat.

Amit Kumat, MD & CEO of the company, spoke to CNBC-TV18 about the acquisition.

Kumat said that the company will not be taking debt for this deal as they have cash worth Rs 140 crore in books.

Talking about the new acquisition, he said, “The Company’s (Avadh Snacks) revenue currently is around Rs 140 crore with EBITDA margin of 7.5-8.5 percent.”

“They have a very small debt of Rs 2-3 crore,” he added.

According of him, Gujarat market forms around 12-13 percent share of Indian snack market.

"We would like to take stake to 100 percent in next 4-5 years in the new company," said Kumat.

First Published:Aug 23, 2018 12:12 PM IST