In a recent announcement to Stock Exchange, Tasty Bite Eatables announced that its parent company Preferred Brands International has been acquired by Mars Food, 5th largest Foods company in the US.
http://www.bseindia.com/xml-data/corpfiling/AttachHis/82DEAC55_89C4_4BD9_8A8D_0C328A1E6E62_173750.pdf

Entire 100% stake in PBI has been acquired by Mars Food - 30% from founding team and 70% from Kagame, Japan.

In ordinary circumstances a big news like this would have prima facie seemed positive however, it is slightly more complicated here as Indian listed company is merely a manufacturing setup whereas brand ownership and distribution rights reside with the parent company PBI. Earlier we had kept faith in Mr. Ashok Vasudevan and his team regarding transfer pricing between the two entities, however with an MNC giant taking over the entire operations one would've to revisit the thesis.

The press release states that current leadership team would continue to run the show however that arrangement would have one key ingredient missing - skin-in-the-game, as promoters seem to have fully exited.

This has also triggered an open offer at Rs 5,324.

The current valuation seem to have priced-in all the positives and leaves no room for any disappointment.

We initiated buying TBEL at Rs 640 during April'15 and bought all the way till Rs 1,000 with an allocation of 5%. The stock is up 9x since our initial entry price.

For now, we suggest exiting this position completely.