India39;s Haldiram39;s considers majority stake in Prataap sources
Early talks now, valuation not decided yet sources
Prataap39;s shares still trade around 2017 listing price

MUMBAI, Jan 18 Reuters Indian snacks maker Haldiram39;s is in talks to acquire a majority stake in listed rival Prataap Snacks, which is valued at 350 million, to expand its presence in the potato chip market, two people with direct knowledge of the matter said.

Prataap Snacks shares in Mumbai jumped about 13 to their highest levels since 2018 after the news, before paring some gains to close 9.7 higher.

The talks are at an early stage and a valuation has not been discussed, though it could be at a premium to Prataap39;s stock price. Haldiram39;s is considering a majority stake of at least 51, but a final number has not been decided, said the sources, who declined to be named as the discussions are confidential.

Prataap is best known for its Yellow Diamond brand of chips and competes with Pepsi39;s Lay39;s brand and other snackmakers in a market where local, unorganised food sellers still dominate the fried chips segment.

Venture capital firm Peak XV Partners, formerly known as Sequoia Capital India, owns around 47 of Prataap Snacks and is looking to fully exit its stake in Prataap, the sources added.

Haldiram39;s CEO Krishan Kumar Chutani, Prataap CEO Amit Kumat, and Peak XV all declined to comment.

Prataap made its stock market debut in 2017 and had annual revenues of around 200 million…