Haldiram family eyeing IPO, plans to merge Delhi and Nagpur entities ahead of listing

Following the impressive market debut of Bikaji Foods, rival snacks behemoth Haldiram’s is eyeing an initial public offering (IPO) in the next 18 months, CNBC TV-18 reported, citing sources, on November 18.

In the run-up to the IPO, the Haldiram family is planning to merge their Delhi and Nagpur-based businesses to create a combined consolidated entity, the persons who are privy to the development told the news channel.

The two sides have initiated deliberations for the merger process, which is likely to complete within a year, the sources said, adding that they have also approached bankers for the same.

The owners of both – Bikaji and Haldiram’s – are four brothers who had parted ways in 1980 to head their separate business entities. Their grandfather Ganga Bishan Agarwal had founded the original Haldiram snacks company in 1982.

The oldest brother, Shiv Kishan Agarwal, runs the Nagpur-based Haldiram Snacks which has dominant control over the west and south India market. The Delhi-based entity – Haldiram Foods Internationals – is operated by brothers Manohar and Madhusudan Agarwal.

The fourth brother, Shiv Ratan Agarwal, leads Bikaji, whose recent IPO received a robust response from investors. The issue received bids for 55.04 crore shares against the IPO size of 2.06 crore shares. The offer was overall subscribed 26.67 times on November 7, the final day of bidding.

The potential Haldiram’s IPO will be keenly watched, as both the Haldiram entities hold a cumulative share of 48.5 percent in the Indian ethnic snacks market, according to a recent survey conducted by Frost & Sullivan.

The combined revenue of both the Haldiram entities added up to Rs 9,000 crore in the fiscal year 2021-22, which is significantly higher as compared to a revenue of Rs 1,600 crore clocked by Bikaji during the same period.

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