Haldiram Promoters Revise Stake Sale Plan, Now Eyeing 10-15% Minority Stake: Report

Haldiram stake sale: Earlier this year, Bain Capital, Blackstone, and Temasek had shown interest in acquiring a majority stake in Haldiram Snacks

Private equity giants Bain Capital, Blackstone, and Singapore-based Temasek Holdings are currently evaluating Haldiram's for potential investment.

Source : https://www.haldiram.com/

Haldiram stake sale: The promoters of Haldiram Snacks Food Pvt Ltd, one of India’s leading snack manufacturers, have revised their plans regarding the sale of the company’s stake. According to a report by Mint, the promoters are now seeking to offload a 10-15 per cent minority stake, instead of the previously considered majority stake.

Private equity giants Bain Capital, Blackstone, and Singapore-based Temasek Holdings are currently evaluating Haldiram's for potential investment. This marks a shift from earlier plans to sell a controlling 51 per cent stake, which would have valued the company between $8 billion to $10 billion. However, the decision to opt for a minority stake sale may be driven by Haldiram's strong profitability and cash flow potential, as mentioned in the report.

Bloomberg had previously reported that Temasek Holdings was in initial discussions to acquire a minority stake, which could value the company at around $11 billion. This investment is seen as a potential precursor to an initial public offering (IPO), which could further enhance Haldiram's market presence.

Earlier this year, Bain Capital, Blackstone, and Temasek had shown interest in acquiring a majority stake in the company. At the time, the deal was seen as a strategic move for global investors to gain a foothold in India’s rapidly expanding snack market, which is projected to grow to Rs 95,521.8 crore by 2032.

Despite the shift to a minority stake, private equity firms remain interested due to the long-term growth potential of India’s food and beverage sector.

Haldiram Group Merger and Reorganisation

These developments follow a significant reorganisation within the Haldiram group. Last year, the Nagpur and Delhi factions of the company merged, leading to the formation of Haldiram Snacks Food Pvt Ltd. The new entity is now 56 per cent owned by Delhi’s Haldiram Snacks Pvt Ltd (HSPL) and 44 per cent by Nagpur’s Haldiram Foods International Pvt Ltd (HFIPL).

The Haldiram brand traces its roots back to 1937 when founder Ganga Bhishen Agarwal started a small sweet shop. Over the years, the Delhi and Nagpur businesses operated separately, with the Delhi operations overseen by Manohar Agarwal and Madhu Sudan Agarwal, and the Nagpur operations managed by Kamalkumar Shivkisan Agrawal.