Indian snacks maker Haldiram's (Haldiram Foods International Pvt. Ltd) is in talks to acquire a majority stake in listed rival Prataap Snacks Limited (NSEI:DIAMONDYD), opens new tab, 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 Prataap's stock price. Haldiram'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. 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.

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