Talks are on with Blackstone to take stake in Haldiram, debate is going on regarding valuation

Famous food chain company Haldiram’s stake is going to be sold soon. Blackstone is in talks to buy Haldiram’s stake. Blackstone is in talks with Delhi and Nagpur based Agarwal family members to buy up to 76 percent stake.

Blackstone has been in talks with the snack maker as well as consortium partners Abu Dhabi Investment Authority and Singapore’s GIC for the past few months. Media reports, citing people familiar with the matter, said the talks have been delayed due to differences over the valuation of the business. However, talks have gained momentum in the past few weeks as a source told the outlet, “There have been a lot of discussions with family members about the valuation of the business. Also, the family is not considering giving up the 76 percent controlling stake that the private equity investors wanted, and wants to retain a large portion of the business.”

Some family members want to sell only 51 per cent stake, but current discussions with Blackstone suggest stake sale will be around 74 per cent.” This comes after Bloomberg reported last month that the Agrawal family is evaluating a possible public listing of the business, as bids from private equity investors were not up to the family’s expectations. Haldiram’s had also received bids from PE firms Bain & Co and Temasek Holdings, the report claimed.

The company’s Delhi-based business Haldiram Snacks Pvt Ltd—which gets 85% from sales in the FMCG business and 15% from the restaurant business—reported a revenue of Rs 6,377 crore and a profit of Rs 593 crore in FY23. Meanwhile, the Nagpur business, Haldiram Foods International Pvt Ltd, reported a revenue of 5,974 stores and a profit of Rs 794 crore in FY23, according to Crisil.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top