Bikaji Foods International Limited IPO – Price, Lot size, Open date, GMP & Review 2022-23

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. 

1. 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)

2. 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

3. 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

4. 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.

1. 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.
2. 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. 

1. The company is a well-known name with a pan-India presence.
2. They have a huge network of strategic arrangements with extensive retail chains in the country as well as in international markets.
3. 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.
4. The manufacturing units of the company are strategically located and have state-of-the-art facilities with stringent quality control measures.
5. The company has a diversified portfolio focused on different consumer segments and markets and a growing e-commerce presence.
6. 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.

1. The revenue generation for the company is concentrated on a few products which can be a high risk for the company’s future.
2. The company also faces huge risks due to increasing raw material prices and packaging materials that can have an adverse impact on the business.
3. They also have a huge investment in unsecured debt instruments as well as inadequate insurance coverage.
4. The company and its promoters are involved in a few legal and regulatory proceedings.
5. The company also faces the risk of not being able to fully exploit the brand name ‘Bikaji’ or enhance its popularity.
6. 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