Apart from the stake sale, Haldiram Snacks Food is reportedly likely to launch its initial public offerings (IPO) this year
Competition Commission of India (CCI) has given its nod to the proposed minority stake acquisition by Singapore-based Temasek Holdings in Haldiram Snacks Food Private Limited. The stake sale deal comprises Temasek acquiring less than 10% of the issued and paid-up equity share capital of the Indian packaged snack food giant.
“The target (including its affiliates) will be engaged in the manufacture and sale of packaged food products in India, such as snacks, sweets, ready-to-eat products, dairy products, bakery products, chocolates, and non-carbonated ready-to-drink beverages,” said CCI in a statement.
With this development, the Haldiram stake sale has inched closer to completion. The rumours that the Indian snacks giant will offload around 15% of its stake began surfacing last year. The rumours attracted many bidders, including Bain Capital, Blackstone and Temasek.
The Indian snacks major had initially planned to sell a controlling stake but later revised it to a minority stake.
“The family does not want to sell a controlling stake anymore. It is more likely now a minority deal...It is a well-run business that is profitable and generates a lot of cash. This [minority stake sale deal] makes more sense now,” the Mint had earlier reported, citing a source.
Apart from the stake sale, the packaged snacks food giant is reportedly likely to launch its initial public offering (IPO) this year. The company, however, has made no official announcement regarding the same.
Temasek’s interest in Haldiram is fueled by the booming snacks market in India, driven largely by rising disposable income, evolving food habits and rapid urbanisation. According to a study conducted by the International Market Analysis Research and Consulting Group (IMARC), India’s snack market is expected to grow from Rs 42,694.9 crore in 2023 to Rs 95,521.8 crore by 2032 at a CAGR of 9.8%.