Haldiram in demand! Alpha Wave Global, formerly Falcon Edge and a Tiger Global Management spinoff, has submitted a binding proposal to acquire a portion of Haldiram Snacks Food, India’s premier snack and convenience foods manufacturer. According to informed sources, this transaction could rank amongst India’s largest private-equity deals.
Last week, two additional investor groups submitted firm offers for a 15% to 20% stake in Haldiram. The first consortium comprises Blackstone, GIC of Singapore and ADIA, whilst the second features Bain Capital partnering with Temasek. The US-based investment firm has joined these competing groups.
Sources told ET that the bidders have assessed the enterprise value between Rs 75,000-Rs 80,000 crore ($8.8 billion – $9.4 billion).
The Blackstone and Bain-led groups have separately engaged in periodic discussions with the Agarwal family, the founding promoters, for approximately a year.
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The Haldiram founding family has been considering various strategic alternatives. Initially, they contemplated selling a controlling stake in their 87-year-old enterprise. They are also exploring the possibility of divesting a minority shareholding in the combined packaged foods operations of their Delhi and Nagpur divisions.
Several investor groups are seeking a larger stake of approximately 25% or management rights that would ensure equal or shared control of operations and board representation. Based on the final stake size, the deal value could range from Rs 11,250 crore ($1.3 billion) to Rs 18,750 crore ($2.2 billion), potentially becoming one of India’s largest private-equity investments.
In the fiscal year 2024, the combined operations of Haldiram Nagpur and Delhi achieved revenues of Rs 12,800 crore, with an EBITDA of Rs 2580 crore. Their profit after tax ranged between Rs 1350-1400 crore.
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The seven branches comprising the promoter group from both Nagpur and Delhi divisions have been considering whether a partial stake sale and subsequent listing would achieve their target valuation exceeding Rs 93,500 crore ($11 billion), rather than surrendering complete control. The family continues to seek a minimum valuation of $10 billion from private equity organisations.
The private-equity investors currently view a public listing within 12-24 months as their preferred route for investment returns.
“Nobody would want to write such a large cheque and be just a passive investor,” said an official involved on condition of anonymity as the deliberations are in private domain. “The road to value creation, liquidity and even rights need to be clearly spelt out and agreed upon. The family has been indecisive for years.”
Since 2016-17, numerous private equity organisations, including General Atlantic, Bain Capital, Capital International, TA Associates, Warburg Pincus, and Everstone, have engaged in discussions with the Agarwal family regarding stake acquisition. Subsequently, both Kellog’s and Pepsico conducted extensive negotiations to acquire 51% or greater ownership, but withdrew due to the Agarwal family’s fluctuating positions and valuation expectations.
In September, Tata Consumer Products presented a comparable offer but declined to proceed at the $10-billion valuation.
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