Blackstone in talks for Haldiram's stake: ‘Lot of back and forth over valuation’

Blackstone has been in talks with the snack maker along with consortium partners Abu Dhabi Investment Authority and Singapore’s GIC for the last few months.

Blackstone has been in talks with Delhi and Nagpur-based members of the Agrawal family for acquiring up to 76 percent stake in Haldiram's. Blackstone has been in talks with the snack maker along with consortium partners Abu Dhabi Investment Authority and Singapore’s GIC for the last few months. Moneycontrol reported citing people in the know that differences over valuation of the business have delayed the negotiations.

A view shows packets of snacks on the shelves inside a Haldiram's restaurant in Mumbai, India. (Reuters)

But the talks are now gaining momentum over the last few weeks as one source told the outlet, “There has been a lot of back and forth with the family members over the valuation of the business. Also the family is not looking at giving away a 76 percent controlling stake, which the private equity investors wanted, and want to retain a larger share of the business. Some family members would like to sell only a 51 per cent stake but the current discussions with Blackstone are likely to see a stake sale of closer to 74 per cent."

This comes as Bloomberg reported last month that the Agarwal family is evaluating a potential public listing of the business as bids from private equity investors did not meet family’s expectation. Haldiram's had also received bids from PE firm Bain & Co. and Temasek Holdings, the report claimed.

The company's Delhi-based business Haldiram Snacks Pvt Ltd- which gets 85% from sales in FMCG business and 15% from its restaurant business- reported revenue of ₹6,377 crore in FY23 and profit of ₹593 crore. Meanwhile, the Nagpur business, Haldiram Foods International Pvt Ltd, reported a revenue of ₹5,974 store and a profit of ₹794 crore in FY23 as per Crisil.