Yesterday, the market traded mostly sluggish and in negative territory on the first Nifty banks’ Wednesday expiry. However, the market took a U-turn in the last leg on news that Tata Group Company might be buying a majority stake in Haldirams snacks. The FMCG indices and Tata Consumer closed with healthy gains.

Haldiram’s an 80-year-old family-run business that traces its origins back to a tiny shop founded in 1937 and holds 13% of the snack market. Known for its bhujia, the brand is run by third-generation brothers with over 70 sweet and salty snacks and restaurants in Delhi and Nagpur. Haldiram's snacks are also sold in overseas markets like Singapore and the United States. The company has around 150 restaurants selling local food, sweets, and western cuisine.

Both Haldirams and Tata Consumer have denied any acquisition rumors. As today's session started (Sept. 7), Tata Consumer Products fell 1.4 percent to Rs 865 at opening, reversing the gains made from the rumors and following the company's denial of news reports that it was in talks to buy a stake in Indian food snack chain Haldiram's. In an exchange filing, the Tata Group company denied the report by saying and referring to the report of acquisition that the company is holding no talks in this regard. At the time of reporting, the stock had fallen 2.5% from the previous session.

Haldiram commented after the market closed, saying they denied all the rumors regarding the acquisition.

A year ago, Haldiram’s chairman, in an interview with a news agency, said that they aim to bring an IPO in the next 2–3 years. Last year, when Bikaji Foods' filed its Red Herring Prospectus (RHP) with SEBI, it listed Haldiram Foods as a key competitor, but in reality, Bikaji and Haldiram belong to one family. There were many rumors made when the BIkaji IPo came.

There is news that Haldiram's is also talking with private equity firms, including Bain Capital, about the sale of a 10-percent stake.