After agreeing to sell a 10% stake in Haldiram Snacks Foods to Singapore-based Temasek for $10 billion, the Indian ethnic snacks company is looking to sell another 5% stake for around $500 million, according to reports.

This stake sale is part of the pre-IPO placement.

Other private equity firms that were in the running for a stake in the company pulled out, citing high valuations.

According to reports, the company will continue to be run by its promoters, the Agarwal family. The family may use some of the proceeds from the sale to expand the business, while the remainder will go to the family office for other purposes.

Haldiram's had previously sought a higher valuation, but a sharp drop in Indian stock markets over the last six months, combined with concerns about food companies' December quarter results, made potential buyers wary.

The family was unavailable for comment, and Temasek declined to comment on the transaction.

The company was in talks with several buyers, including consumer goods and private equity firms such as Tata Consumer Products and Blackstone, but no deal was reached.This is the company's first time selling a stake.

The Agarwal family runs three Haldiram entities in India, with the Delhi, Nagpur, and Kolkata branches operating independently under the founder's brand.

However, the Delhi and Nagpur families merged HFIPL and Haldiram Snacks Private Ltd., both part of the Haldiram Delhi group, to form Haldiram Snacks Foods Private Ltd. (HSFPL).

According to the merger agreement, existing shareholders of HSPL and HFIPL will own 56% and 44% of the new entity, respectively. HSFPL oversees the Haldiram group's consumer products operations. The restaurant business has been spun off into a separate company and is not for sale.