In a major development for India’s FMCG sector, UAE-based Alpha Wave has secured a 6% stake in Haldiram’s, investing Rs 5,600 crore. This follows the recent 9% stake purchase by Singapore’s state-owned Temasek, reflecting growing investor interest in the iconic snack giant.
Promoters Cash In
The promoters, comprising the Agrawal family branches from Nagpur and Delhi, have collectively gained over Rs 13,000 crore from the two deals. Reports suggest that further negotiations are in progress with a domestic private equity firm to offload an additional 1-2% stake.
Alpha Wave’s Strategic Move
Alpha Wave, led by UAE’s National Security Advisor Tahnoun Bin Zayed, has a diverse investment portfolio, including Elon Musk’s SpaceX and the Adani Group. The firm’s acquisition of a stake in Haldiram’s solidifies its foothold in India’s consumer market.
Path to IPO
Following the family business merger between Haldiram’s Snacks Private Limited in Delhi and Haldiram’s Food Private Limited in Nagpur, the unified entity now holds a valuation of Rs 84,000 crore. Sources suggest that this valuation may double upon an initial public offering (IPO), which is expected within a year.
An insider noted, “The primary goal was to establish a market-driven valuation. With successful stake sales to Alpha Wave and Temasek, the promoters now have the confidence to proceed with an IPO.”
Competition Approval
To ensure compliance and fair competition, Haldiram’s has sought approval from the Competition Commission of India (CCI) regarding its Temasek deal. Further regulatory approvals will pave the way for the anticipated public offering.
Conclusion
With strong backing from global investors and a solidified valuation, Haldiram’s is well-positioned for a successful IPO. As the brand continues to dominate India’s savory snacks market, its expansion into the capital market is set to attract significant investor interest.
