After selling over 9 per cent stake to Temasek of Singapore for around Rs 8,000 crore, Haldiram Snacks Food, the country’s leading snack and food brand, has sold another six per cent stake to two new investors – Abu Dhabi-based IHC (International Holding Company) and Alpha Global Wave. Though the company did not announce the deal size, market estimates are that it could be around Rs 6,000 crore, valuing the company at $10 billion (Rs 86,000 crore).
With this, Haldirams has raised around Rs 14,000 crore by selling 15 per cent stake in the company. With the backing of Alpha Wave Global and IHC, Haldirams is set to leverage the vast expertise and networks of these investors to broaden its footprint in key international markets such as the US and Middle East, while strengthening its footprint and presence further in India, said PwC India, which acted as the financial advisor to the deal. “These markets which demonstrate growing demand for Indian cuisine and snacks, will be the primary focus areas in the company’s global expansion strategy,” it said.
“With this partnership, we are well-positioned to enhance our product offerings, expand our operations, and further our mission to make Haldirams a household name in Middle East and other international geographies,” said a spokesperson of Haldirams.
The stake sale could be a precursor to an initial public offering (IPO) by Haldiram, according to investment banking sources.
Ganga Bhishen Agarwal was the founder of Haldirams. Agarwal family was operating three different entities in India with Delhi (run by Manohar and Madhusudan Agarwal), Nagpur (run by Kishan Agarwal), and Kolkata (Shiv Ratan Agarwal) families running separate businesses. Delhi and Nagpur families recently merged into a new entity named Haldiram Snacks Foods Private Ltd (HSFPL).
Shiv Ratan Agarwal’s Bikaji Foods 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 Haldirams comes out with an IPO, global private equity firms will purchase stakes in unlisted firms like Haldirams 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, Haldirams 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.
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