High valuation amid market fall delays Haldiram deal

Blackstone exits race to buy food company

- DEV CHATTERJEE & SHARLEEN D'SOUZA

A sharp decline in Indian equities has delayed the planned stake sale in Haldiram, a major food conglomerate, as prospective buyers seek to renegotiate terms on the valuation of the group.

Blackstone, an American private-equity firm, has backed off, citing a high valuation, according to bankers.

Singapore-based Temasek was in advanced talks to buy 10 per cent in the company at a valuation of $10-11 billion. But a 15 per cent fall in the BSE Sensex and a 15.6 per cent drop in the Nifty 50 over the past six months, coupled with slowing consumption, have made buyers wary.

Another source in the know said the profitability of the food company had been under pressure owing to rising commodity prices, which has had an impact on valuations.

"This is now a buyer's market," said an investment banker.

"The market rout and the rupee's depreciation have depressed valuations across the board."