Bikaji Foods International Ltd. IPO
Bikaji Foods International Ltd.
IPO Listing Details
Listed On
BSE & NSE
Listed On
Issue Price
₹300
Issue Price
Listing Price
₹321
Listing Price
Listing Gains
+₹21.15 (+7.05%)
Listing Gains
IPO Details
Bidding Dates
03 Nov - 07 Nov '22
Bidding Dates
Min. Investment
₹14,250
Min. Investment
Lot Size
50.00
Lot Size
Price Range
₹285 - ₹300
Price Range
Issue Size
837 Cr
Issue Size
Subscription Rate
- Retail Individual Investor4.77x
- Non-Institutional Investor7.10x
- Qualified Institutional Buyers80.63x
- Employees4.38x
About Company
Bikaji Foods International Ltd, the confectionary and savouries company, is set to launch its initial public offering (IPO) on November 3. Incorporated on October 6, 199, Bikaji Foods is the second fastest growing company in the Indian organised snacks market and the third largest ethnic snacks company in India with an international footprint.
The company was the largest manufacturer of Bikaneri bhujia with an annual production of 29,380 tonnes, and the second largest manufacturer of handmade papad, with an annual production capacity of 9,000 tonnes in Fiscal 2022, as per its draft red herring prospectus (DRHP).
The company’s product range includes 6 principal categories: bhujia, namkeen, packaged sweets, papad, western snacks, as well as other snacks, which primarily include gift packs (assortment), frozen food, mathri range and cookies. It sold more than 300 products under the Bikaji brand in the three months ended June 30, 2022.
Bikaji Foods has 7 manufacturing facilities, with 4 facilities located in Bikaner, 1 in Guwahati, 1 in Tumakuru and 1 in Muzaffarpur.
Bikaji Foods IPO will open for subscription on November 3 and close on November 7. The company has fixed the price band for its maiden public issue at Rs 285-300 per share. The anchor book will open for a day on November 2.
The IPO consists of only an offer-for-sale (OFS) of more than 2.93 crore equity shares by existing shareholders, including promoters. The company plans to raise Rs 881.2 crore through the IPO. The entire proceeds from the issue will be received by selling shareholders, and the company will not receive any money from the offer.
Important Dates - Bikaji Foods Ltd IPO
| Application opens on | 3rd November 2022 |
| Last date of application | 7th November 2022 |
| Date of Allotment | 11th Novemberber 2022 |
| Refund begins from | 14th Novembber 2022 |
| Credit of shares to Demat | 15th November 2022 |
| Listing date | 16th November 2022 |
Why should you invest in Bikaji Foods International Ltd. IPO?
Bikaji Foods is one of the largest organized namkeen snacks and sweets manufacturing and marketing companies in India. The company has a strong brand name with a good distribution network. It has seen a constant increase in earnings over the years.
Financial Snapshot -Bikaji Foods IPO
Bikaji Foods has seen decent growth in business and financial performance over the years. Check out the earnings of the company in recent years.
| Financial Year | Total Assets | Total Revenues | Net Profit |
|---|---|---|---|
| March 2020 | Rs 676.64 crore | Rs 1,082.9 crore | Rs 56.37 crore |
| March 2021 | Rs 817.15 crore | Rs 1,322.21 crore | Rs 90.34 crore |
| March 2022 | Rs 1,146.28 crore | Rs 423.82 crore | Rs 15.7 crore |
Bikaji Foods Ltd IPO Noteworthy Highlights
Here are some of the key details and information about Bikaji Foods IPO before investing:
- Bikaji has developed a large pan-India distribution network. The company had 6 depots, 38 super-stockists, 416 direct and 1,956 indirect distributors that work with their super-stockists, as of June 30, 2022. In the 3 months ended June 30, 2022, it exported products to 21 international countries, including countries in North America, Europe, Middle East, Africa, and Asia Pacific.
- Bikaji Foods’s IPO lot size is 50 shares, and a retail-individual investor can apply for up to 13 lots, making the total investment of 650 shares or Rs 195,000.
- The book-running lead managers (BRLM) to the Bikaji Foods IPO are Axis Capital, JM Financial, IIFL Securities, Intensive Fiscal and Kotak Mahindra Capital.
- The company has reserved 2,50,000 equity shares in the IPO for its eligible employees and will offer them a discount of Rs 15 per share. It has allocated 50% for QIBs, 15% for HNIs, and 35% for retail investors.
Bikaji Foods International Ltd. IPO - SWOT Analysis
Strengths
Bikaji Foods has a strong brand name, a diversified product portfolio and a vast distribution network. The company has seen constant growth in revenue, EBITDA and profit, increasing at a CAGR of 20.3%/23.4%/32.6%. It has strategically located, large scale sophisticated manufacturing facilities with stringent quality standards
Weaknesses
The company is significantly dependent on the sale of our bhujia products and family pack stock keeping units (SKUs) for its revenues. A lower profit margin indicates that higher profit would be possible only through a constant increase in volume.
Opportunities
The company is strengthening its presence in e-commerce, new generation and institutional channels. It has developed strategic initiatives to ensure future readiness along with growth strategies across E-commerce and New Age Channels. From a concentrated player, the company is becoming a pan-India dominant player.
Threats
Any variations in raw materials, pricing, product mix, end consumer preferences, sales velocities, advertisement and sales promotion initiatives, and competition may adversely impact Bikaji Foods’ profit and EBITDA margins. It also faces strong competition from several local snack manufacturers. Moreover, a breach of strict food safety and standards norms can directly impact the business.
Bikaji Foods IPO Grey Market Premium
| Date | GMP |
|---|---|
| 1st November | Rs.70 |
| 31st October | Rs.70 |
How to apply for Bikaji Foods International Ltd. IPO?
You can apply for the Bikaji Foods International Ltd. IPO in these ways:
UPI
Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more.
Demat Account
1. If you are an Existing TradeSmart demat account holder and wish to apply for an Bikaji Foods International Ltd. click here.
2. If you don't have a TradeSmart Account? Sign up.
