Haldiram's Explores IPO Amidst Stalled Stake Sale Plans

Haldiram Snacks Pvt Ltd., a prominent name in India's culinary heritage, is considering an initial public offering (IPO) following unsuccessful efforts to sell the company to foreign investors. This move follows the Agarwal family's dissatisfaction with the bids received, which did not meet their valuation expectations, as reported by Moneycontrol. 

The family is now contemplating an IPO as an alternative means to unlock the value of their business. Although they received offers ranging from $8 billion to $8.5 billion from major investors, including a consortium led by Blackstone Inc., Abu Dhabi Investment Authority, and GIC Pte, as well as another group led by Bain & Co and Temasek Holdings Pte, these bids did not meet the family's $12 billion valuation. This gap has led the Agarwal family to reconsider their approach and think about going public with the company. 

The Agarwal family is contemplating a public listing after receiving bids between $8 billion and $8.5 billion, which fell short of their approximately $12 billion valuation expectations, according to sources who requested anonymity due to the private nature of the information.

The potential IPO is still in its early stages, and no final decisions have been made. The controlling shareholders of Haldiram's might still opt to revise their valuation expectations and pursue a direct sale. However, the public offering remains a compelling and attractive option, especially given the current bullish trend in the Indian IPO market.

IPO considerations are still in the preliminary phase, and the controlling shareholders may yet choose to reduce their asking price and proceed with a sale, according to the sources.

India has become a hotspot for IPOs, raising approximately $3.9 billion so far this year—double the amount raised during the same period in 2023 and surpassing the combined totals of Hong Kong and Korea, according to data compiled by Bloomberg.

Haldiram's is a well-known brand specializing in sweets and snacks, with a widespread network of retail stores and restaurants throughout India. Established by Ganga Bishan Agarwal in the 1930s in northern India, Haldiram's offers a variety of products, including sweet and savory snacks, frozen meals, and breads. The company also operates 43 restaurants in and around Delhi, according to its website.