Premium

Global equity firms led by Temasek in race to buy Haldiram stake

While Singapore-based Temasek is leading the race to buy around 10 per cent stake for $1 billion (Rs 8,550 crore) and signed a term sheet with Haldiram Snacks, US-based Alpha Wave Global which has invested in several Indian firms is also in the race.

Temasek, Blackstone, Haldiram Snacks Foods, Indian sweets, snacks, initial public offering, Haldiram stake, Indian express business, business news, business articles, current affairs

Haldiram’s has its headquarters in Noida and boasts manufacturing plants across several locations, including Nagpur, New Delhi, Gurgaon, Hooghly district, Rudrapur and Noida.

Global investment firms from Blackstone to Temasek are eyeing a stake in unlisted Haldiram Snacks Foods with valuation of the Indian sweets, snacks and restaurant company touching over $10 billion (over Rs 85,500 crore).

While Singapore-based Temasek is leading the race to buy around 10 per cent stake for $1 billion (Rs 8,550 crore) and signed a term sheet with Haldiram Snacks, US-based Alpha Wave Global which has invested in several Indian firms is also in the race. The stake sale could be a precursor to an initial public offering (IPO) by Haldiram Snacks, according to investment banking sources.

“Temasek does not comment on market speculation. We thus decline to comment,” Temasek said in a statement to The Indian Express. Haldiram Snacks did not react to the mails from The Indian Express. The valuation by Blackstone-led consortium for a 20 per cent and its demand for joint management control reportedly did not reportedly meet the expectations of the company which was expecting a total valuation of $ 12 billion. If Haldiram Snacks strikes a deal with a private equity firm at $10 billion valuation, it would probably one of the largest deals in the Indian corporate history. Haldiram Snacks reported a turnover of Rs 6,375 crore in FY23.

Story continues below this ad

Temasek’s India exposure is about $40 billion and it recently announced plans to invest up to $10 billion over the next three years. Ganga Bhishen Agarwal was the founder of Haldiram Snacks. Agarwal family was operating four different entities in India with Delhi, Nagpur, Kolkata and Bikaner families running separate businesses. These included Haldiram Snacks, Haldiram Foods International, Haldiram Bhujiawala and Bikaji Foods.

Delhi and Nagpur families recently merged into a new entity named Haldiram Snacks Foods Private Ltd (HSFPL). Shiv Ratan Agarwal’s Bikaji Foods recently came out with a successful IPO, with the issue being priced at Rs 300 per share that is now quoting at Rs 721 on the stock exchanges. “If Haldiram (Snacks) comes out with an IPO, global private equity firms will purchase stakes in unlisted firms like Haldiram (Snacks) before the IPO and later sell it during the IPO at a hefty premium. This has happened in multiple cases in the last two years,” said an investment banking source.

Started in Bikaner, Rajasthan, in 1937, Haldiram’s impressive product portfolio comprises over 400 items, including traditional namkeens, western snacks, Indian sweets, cookies, sherbets, pickles and more. Customer favourites like gulab jamun, Bikaneri bhujia, and papadam have contributed to the brand’s success. Haldiram’s has its headquarters in Noida and boasts manufacturing plants across several locations, including Nagpur, New Delhi, Gurgaon, Hooghly district, Rudrapur and Noida. The company’s retail presence is significant, with its own chain stores and restaurants in major cities like Pune, Nagpur, Raipur, Kolkata, Noida, Mumbai and Delhi. Haldiram’s products have gained popularity worldwide, with exports to over 80 countries.

Private equity investments rose by 46 per cent to $15 billion in India in 2024.