Introduction
The brand name Bikaji is a very big and well-known name in the food industry. Their snacks and sweets have found a place in every home in India and are also a popular name abroad. This name is now going to be listed on stock exchanges with the upcoming IPO of the company.
The Bikaji Foods International Limited IPO was open for subscription from 3rd November 2022 to 7th November 2022. The IPO was subscribed 26.67 times on the final day of its subscription, mostly led by QIBs. The retail portion was subscribed 4.77 times. As per market participants, Bikaji Foods IPO grey market premium (GMP) was at Rs 17 on the final day of subscription.
The details of this IPO and its review are mentioned hereunder.
Read More: Should you subscribe to all IPOs being launched?
IPO Details
The various details of the Bikaji Foods International Limited IPO are as under.
- IPO Size
The size of the IPO and different categories of the issue are,
| Category | Details |
| IPO Opening Date | 3rd November 2022 |
| IPO Closing Date | 7th November 2022 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face Value of shares | Re.1 per share |
| IPO Price Band | Rs.285 – Rs.300 per share |
| IPO Size | Rs.881.22 crores (29,373,984 shares of Re.1) |
| Offer For Sale | Rs.881.22 crores (29,373,984 shares of Re.1) |
- IPO Dates
The important dates for the Bikaji Foods International Limited IPO are highlighted below.
| Event | Date |
| Price Band Allotment | 31st October 2022 |
| Anchor Investors Allotment | 2nd November 2022 |
| Opening date | 3rd November 2022 |
| Closing Date | 7th November 2022 |
| Allotment date | 11th November 2022 |
| Refund Date | 14th November 2022 |
| Share Credit Date | 15th November 2022 |
| Listing Date | 16th November 2022 |
- IPO Lot Sizes
The subscription for shares of Bikaji Foods International Limited IPO can be done in lots by every investor category. The details of the lot sizes for this IPO are mentioned below.
| Category | Details |
| Minimum investment | 1 lot |
| Shares in each lot | 50 shares |
| Minimum amount of investment per lot | Rs. 14,250 |
| Maximum permissible investment in Lots | 13 lots |
| Maximum shares for investment | 650 shares |
| Maximum amount of investment permissible | Rs. 195,000 |
- IPO Reservation
Bikaji Foods International Limited IPO has notified investor categories and the share of each category in the IPO is tabled below.
| Category of Investor | Reservation of the IPO applicable |
| QIB (Qualified Institutional Buyers) | 50% |
| NII (Non-Institutional Bidders) | 15% |
| RII (Retail Individual Investors) | 35% |
Bikaji Foods International Limited IPO Objectives
The objectives of the Bikaji Foods International Limited IPO mention the benefits that the company expects from the IPO. The details of the same are mentioned below.
- This IPO is in the nature of an Offer for Sale. Therefore, the proceeds from the same will not be received by the company after the deduction of offer expenses and taxes thereon.
- Furthermore, the company aims to receive listing benefits from this IPO.
About Bikaji Foods International Limited IPO
Bikaji Foods International Limited IPO has a huge range of products from their most popular bhujia to other snacks like namkeen, papad, sweets, mathri range, gift packs, frozen foods, western snacks, etc. The brand sells more than 300 products and has been growing huge strengths.
The company has a good presence in 23 states and 3 union territories in the country as well as a stronghold in Rajasthan, Bihar, and Assam. Apart from these markets, Bikaji Foods also have a good international footprint with exports to 21 international countries including big names like North America, Europe, Africa, Asia Pacific, and the Middle East.
Financials of the company
The core financials of the company are tabled below.
| Year | Total Assets (Rs. In crores) | Operating Revenue (Rs. In crores) | Profit after tax (Rs. In crores) | Basic EPS | Diluted EPS | RONW |
| 2022 | 1102 | 1611 | 76 | 3.15 | 3.15 | 9.51% |
| 2021 | 817 | 1311 | 90 | 3.71 | 3.71 | 14.93% |
| 2020 | 677 | 1074 | 56 | 2.32 | 2.32 | 10.65% |
Strengths of the company
Some of the key strengths of the company are highlighted below.
- The company is a well-known name with a pan-India presence.
- They have a huge network of strategic arrangements with extensive retail chains in the country as well as in international markets.
- They are the third-largest name in the organized market for sweets and with an annual capacity of 24,000 tonnes of packaged rasgullas, 12,000 gulab jamuns, and 23,040 soan papdi. They also had the largest production of Bikaneri Bhujia in 2022 with an annual production of approximately 29,380 tonnes.
- The manufacturing units of the company are strategically located and have state-of-the-art facilities with stringent quality control measures.
- The company has a diversified portfolio focused on different consumer segments and markets and a growing e-commerce presence.
- Bikaji Foods have an extensive network of distributors across the country and strong financial performance.
Risks of investment
The different risks that are faced by the company are highlighted below.
- The revenue generation for the company is concentrated on a few products which can be a high risk for the company’s future.
- The company also faces huge risks due to increasing raw material prices and packaging materials that can have an adverse impact on the business.
- They also have a huge investment in unsecured debt instruments as well as inadequate insurance coverage.
- The company and its promoters are involved in a few legal and regulatory proceedings.
- The company also faces the risk of not being able to fully exploit the brand name ‘Bikaji’ or enhance its popularity.
- The company also faces difficulty in managing the growing super stockist and distributor network as well as any disruption in the distribution chain.
What is the Grey Market Premium (GMP) on Global Health IPO?
As of November 3, 2022, the grey market premium for the shares of Bikaji Foods International Limited is Rs. 17 as per market observers. This means that the grey market expects the company’s stocks to be listed at a price of about Rs. 300 + Rs. 17 = Rs. 317.
Should you apply for Bikaji Foods International Limited IPO?
Bikaji Foods has the advantage of being a popular brand and the revenues of the company have increased by 22.4% CAGR in the period between FY 20-22 and a corresponding increase in the net profits of approximately 16.1% in the past 3 years. The company also has an increase in the debt-equity ratio from its past two years to 0.19 in FY 22.
The pricing of the IPO in the higher price band is quite aggressive and higher than established brands like Nestle and Britannia. This makes the IPO a risky proposition and thereby unsuitable for risk-averse investors and investors with short-term investment horizons. On the other hand, the IPO is a good bet for aggressive investors and long-term portfolio addition.
How to apply for Bikaji Foods International Limited IPO?
Investors can invest in this IPO through the Fisdom app.
FAQs
A. The price band for Bikaji Foods International Limited IPO is Rs. 285 to Rs. 300 per share.
A. The objects of the Bikaji Foods International Limited IPO include listing benefits only as the proceeds from the IPO will be received by the promoters.
A. The Bikaji Foods International Limited IPO was open for subscription from 3rd November 2022 to 7th November 2022.
A. Post the IPO, the general public will hold approximately 24% of the company.
A. The eligible investors for Bikaji Foods International Limited IPO are, QII (50%), NII (15%), and RII (35%)
