- Haldiram Has Plenty of Money to Run Its Business
- The Bigger Picture: The IPO Could Also Give Existing Investors an Exit
- What Should Retail Investors Watch?
Whether it is bhujia during a train journey or namkeen served to guests during Diwali, Haldiram has become a familiar name in Indian households. Now, the company behind the popular snacks is preparing to enter the stock market.
Haldiram Snacks Food is preparing for a potential IPO in late 2027, with an estimated issue size of ₹10,000 crore and a target valuation of over ₹1 lakh crore. According to reports, the company has appointed EY to coordinate the IPO preparations, including compliance and work across different business functions.
But there is an interesting question here. Why does a company that generates strong cash flows, holds substantial cash reserves, and has very little dependence on external debt need to go public?
Haldiram Has Plenty of Money to Run Its Business
Usually, companies approach the stock market when they need money to expand, build factories, repay loans or fund other business requirements.
Haldiram, however, appears to be in a much stronger financial position.
According to Crisil Ratings' January 2026 report, the company had revenue of ₹12,977 crore and a net profit of ₹1,195 crore in FY25. Its operating margins were around 18-19%.
Its financial position also tells an interesting story:
- Minimal borrowings: Crisil noted Haldiram's strong financial position, with debt falling from ₹555 crore to just ₹64 crore. This is minimal compared with its revenue of ₹12,977 crore.
- Substantial cash reserves: The company held over ₹1,000 crore in bank deposits and liquid investments as of December 31, 2025.
- Strong cash generation: Crisil expects annual cash accruals of ₹1,400-1,500 crore over the medium term.
- Manageable expansion costs: Its expected annual capital expenditure is around ₹500-600 crore.
In simple words, Haldiram generates enough cash from its business to comfortably fund its expected factory investments and other financial obligations. It does not appear to need a large public fundraising exercise to keep its operations running.
This makes the proposed IPO particularly interesting. If the company is financially comfortable, what is the purpose of going public?
The Bigger Picture: The IPO Could Also Give Existing Investors an Exit
To understand this, we need to look at how Haldiram's ownership has changed.
Earlier, the Delhi and Nagpur businesses operated separately under the Haldiram name. Their packaged-food operations were later combined to create Haldiram Snacks Food, bringing their businesses under one corporate structure.
Following the consolidation, the company attracted major global investors.
In March-April 2025, Temasek, International Holding Company (IHC) and Alpha Wave Global collectively acquired around 15% of the company at a valuation of approximately ₹85,000 crore or $10 billion. US-based investor L Catterton also invested in December 2025.
These investors typically invest in companies with the expectation of eventually selling their stakes and earning returns.
This is where the proposed IPO becomes important.
According to reports, the proposed issue could include both a fresh issue and an Offer for Sale (OFS). The two have different purposes:
- Fresh issue: The company issues new shares and receives the money. It can use this capital for business expansion, debt repayment or other stated objectives.
- OFS: Existing shareholders sell their shares, and the money goes to those shareholders rather than the company.
Therefore, the IPO could serve two purposes: raise additional capital for Haldiram and provide an opportunity for existing shareholders to sell some of their holdings.
However, the final split between fresh issue and OFS is not yet known. It would be premature to conclude that the IPO is primarily an exit for private equity investors or that the company does not need any capital.
What Should Retail Investors Watch?
Haldiram's strong financial position is a positive, but it does not automatically make its IPO attractive. Investors should focus on three things when the company eventually files its DRHP.
1. How much money will Haldiram actually receive?
Check the fresh issue and OFS split. A large OFS would mean more money goes to selling shareholders, while a fresh issue would bring additional capital into the business. Also examine how the company plans to use any fresh proceeds.
2. Is the proposed valuation justified?
The company was valued at approximately ₹85,000 crore in the 2025 investment transactions. Its reported IPO valuation target is now above ₹1 lakh crore, implying a P/E of over 83x based on FY25 earnings. Investors should assess whether its future revenue and profit growth can justify this valuation. (This is an indicative P/E based on FY25 earnings, not the actual IPO P/E.)
3. Can the business maintain its growth?
Crisil expected revenue growth to moderate to 9-10% in FY26, partly because of initial consolidation challenges and lower exports affected by US tariffs. It expects double-digit growth to resume over the medium term. Investors should check whether the company actually delivers this growth and maintains its operating margins.
Haldiram is not approaching the stock market because its financial position suggests an urgent need for rescue. Its strong cash generation and low dependence on debt give it the flexibility to fund much of its expected expansion internally.
The bigger question for retail investors is whether the IPO offers an attractive opportunity at the proposed valuation. A strong brand and a healthy balance sheet make a good starting point, but the price investors pay will ultimately determine whether it is a good investment.
Explore more upcoming IPOs at INDmoney.