ID Fresh in talks to sell 30% stake ahead of potential IPO

Carlyle and L Catterton are among suitors eyeing the proposed about ₹1,200 crore sale

- Priyamvada C. & Sneha Shah

The transaction will give a part exit from ID Fresh to Premji Invest.

Ready-to-cook packaged food items maker iD Fresh is in talks to sell about 30% stake in the company for around ₹1,200 crore to global private equity funds, including Permira, Apax, L Catterton and Carlyle, according to four people familiar with the matter.

"The PE firms are bidding for about 30% stake ({1,200 crore) in the company and the transaction will give a part exit to Premji Invest which first backed the company in 2017," one of the people cited above said.

"The deal will value the overall asset anywhere between ₹4,000-4,500 crore," a second person familiar with the matter said.

The efforts to realign its cap table come as the company prepares for its next phase of growth ahead of a potential public listing. This also comes at a time when the ready-to-eat market is tough to crack, given the intensifying competition and amid India's love for fresh and home-cooked meals.

The deal, which is likely to be a secondary transaction, will see Premji Invest offload nearly half of its stake as the company prepares for an IPO, the first person said.