After Temasek, Haldiram's attracts two more investors IHC, Alpha Wave

Haldiram's to be IPO-bound in 18-24 months

Haldiram Snacks Food (Haldiram’s), India’s leading snack and food brand, will come into the market with its initial public offer (IPO) in the next 18 to 24 months, according to a source in the know. This comes after it signed agreements to sell stake to International Holding Company (IHC), Alpha Wave Global, and Singapore-headquartered global investment firm Temasek at a $10 billion valuation.

 

The ethnic food major on Monday onboarded new investors IHC and Alpha Wave Global to its ongoing equity round, PwC said in a release.

 

Haldiram’s is said to have parted with 6 per cent in this round for $600 million, according to a source. On Sunday, it also announced that it entered into an agreement with Temasek to sell an equity stake held by existing shareholders. The earlier-mentioned source said that Temasek will get 9 per cent.

 

 

“This strategic move further strengthens Haldiram’s financial position as it accelerates its global expansion plans, particularly in the US and West Asia. The investment reflects Alpha Wave Global and IHC’s commitment to backing dominant companies with strong consumer brands,” the PwC release said.

 

The release added that with the backing of Alpha Wave Global and IHC, Haldiram’s is set to leverage the expertise and networks of these investors to broaden its footprint in key international markets such as the US and West Asia, while strengthening its presence further in India.

 

The transaction, which is subject to regulatory approvals, is expected to close soon, the release added.

 

PwC investment banking team acted as the exclusive financial advisor to the transactions. While Khaitan & Co took on the role of legal advisor to Haldiram’s, JSA was the legal advisor to Temasek and Alpha Wave Global.

 

A spokesperson for the Haldiram group said: “We are excited to welcome IHC and Alpha Wave Global as partners in our journey of global growth. The partnership represents patient capital and long-term support to Haldiram’s growth plans. With this partnership, we are well-positioned to enhance our product offerings, expand our operations, and further our mission to make Haldiram’s a household name in the Middle East and other international geographies.”

 

Rick Gerson, cofounder and chairman of Alpha Wave Global, said that over 90 years, the Agarwal family has built Haldiram’s into one of the most loved and iconic brands in India. “We are proud to become a shareholder and partner with Haldiram’s in this next stage of their growth, both domestic and international, while maintaining the delight they have brought to customers for close to a century now,” he added.

 

Navroz Udwadia, cofounder of Alpha Wave Global, also said that their investment in Haldiram’s fits well with their core strategy of identifying and backing dominant businesses with real competitive moats capable of compounding at robust rates of return. “We are thrilled to partner with the Haldiram family as we begin the next phase of the company’s growth journey,” Udwadia added.

 

Syed Basar Shueb, chief executive officer (CEO) of IHC, said: “We are excited to join hands with Haldiram’s, a brand that has set the standard for excellence in the ethnic Indian snacks industry. This investment aligns with Alpha Wave’s and IHC’s strategy to support leading companies that are making a global impact. We look forward to working closely with Haldiram’s to drive innovation and expand its market presence.” 

Adding to plate  

> The snack and food brand is said to have parted with 6% in its ongoing equity round for $600 million

> Sources suggest IHC & Alpha Wave Global have picked up 6% stake collectively

> Investment to accelerate expansion in the US and West Asia, capitalising on rising demand for Indian snacks

> Haldirams has also signed an agreement to sell 9% to Temasek, valuing the company at $10 billion