Bikaji Foods IPO opens at the moment: Here’s all the pieces it’s good to know

Bikaji Foods International Ltd IPO GMP: The preliminary public providing (IPO) of snacks and sweets maker Bikaji Foods International opened for subscription on Thursday, November 3, 2022. It opened for public subscription at 10 am and was subscribed round 21 per cent by 12:06 pm on the primary day of bidding.

It acquired complete bids for 44,26,750 shares throughout each the inventory exchanges towards 2,06,36,790 shares on provide, information from National Stock Exchange (NSE) confirmed.

The Rs 881 crore Bikaji Foods IPO might be obtainable for subscription until Monday, November 7, 2022, and the value band has been mounted at Rs 285-300 per share.

The IPO is solely an offer-for-sale (OFS) of 29,373,984 fairness shares by its promoters and current shareholders. The firm is not going to obtain any proceeds from the problem.

Among the promoting shareholders are each the promoters – Shiv Ratan Agarwal and Deepak Agarwal, who need to promote as much as 25 lakh firm shares every. Apart from the promoters, current investor promoting shareholders are – India 2020 Maharaja Ltd, Intensive Softshare Pvt Ltd, IIFL Special Opportunities Funds and Avendus Future Leaders Fund I.

Half of the problem dimension has been reserved for certified institutional consumers (QIBs), 15 per cent for non-institutional buyers and the remaining 35 per cent for retail buyers.

Bikaji Foods International is the third largest ethnic snacks firm in India with a global footprint, promoting Indian snacks and sweets, and are the second quickest rising firm within the Indian organised snacks market. The firm claimed they have been largest producer of Bikaneri bhujia with annual manufacturing of 29,380 tonnes in Fiscal 2022 (FY22) and through the identical interval they have been additionally the second largest producer of handmade papad with an annual manufacturing capability of 9,000 tonnes.

Apart from snacks, the corporate can be a number one maker of packaged rasgulla, soan papdi and gulab jamun.

“We are also the third largest player in the organised sweets market with annual capacity of 24,000 tonnes for packaged rasgulla, 23,040 tonnes for soan papdi and 12,000 tonnes for gulab jamun,” the corporate stated in its crimson herring prospectus (RHP).

Their whole product vary contains six principal classes: bhujia, namkeen, packaged sweets, papad, western snacks in addition to different snacks which primarily embody reward packs (assortment), frozen meals, mathri vary and cookies. By the tip of June 2022 quarter, Bikaji Foods International bought greater than 300 merchandise underneath the Bikaji model.

Investors who want to subscribe to Bikaji Foods IPO can bid in lots of 50 fairness shares and multiples thereafter. At the higher worth band, they are going to be shelling out Rs 15,000 to get a single lot of Bikaji Foods International. The shares might be listed on each BSE and NSE.

The candidates additionally should word that the cut-off time for UPI mandate acceptance is Monday, November 7, 2022, upto 5:00 pm, the final day of IPO bidding. Further bids with confirmed standing of mandate quantity blocked (RC100) shall be thought of as legitimate functions and therefore, buyers are suggested to submit their UPI functions in IPO properly prematurely to keep away from any final minute technical/systemic constraints that will hamper their means to take part in IPOs by efficiently accepting the mandate.

Axis Capital, Intensive Fiscal Services Pvt Ltd, JM Financial, IIFL Securities and Kotak Mahindra Capital are the book-running lead managers to the provide whereas Link Intime India is the registrar of the problem.

Before heading into the IPO, Bikaji Foods International on Wednesday raised over Rs 262 crore (Rs 2,62,11,58,200) from 36 anchor buyers in lieu of 87,37,194 fairness shares at Rs 300 every, information from the inventory exchanges confirmed.

Eastspring Investments, BNP Paribas, Morgan Stanley, Government of Singapore, Tata Mutual Fund (MF), ICICI Prudential MF, Kotak MF, HDFC MF and Edelweiss MF are among the many anchor buyers.

The anchor buyers embody Government of Singapore, ICICI Prudential Mutual Fund, HDFC MF, Aditya Birla Sun Life MF, WhiteOak Capital, Nomura, BlackRock, Goldman Sachs, Morgan Stanley, ICICI Prudential Life Insurance Company, Max Life Insurance Company, Tata MF, Kotak MF and Edelweiss MF amongst others.

Commenting on the Bikaji IPO, Ravi Singh, vice chairman and head of analysis at Share India Securities stated, “Bikaji Foods is a well known brand in ethnic snacks and namkeen market. It’s network distribution and top line has shown steady growth and further expansion are on cards. However, it has posted declined margins for FY22 on higher sales and this margin pressure has scaled back the bottom line growth. Considering, the company’s FY23 valuations, the IPO is highly priced. Bikaji has always performed well as compared to its peers in terms of revenue and PAT growth. We recommend to subscribe the IPO.”

The analysis groups at Geojit Financial Services, LKP Securities, Motilal Oswal Financial Services and Reliance Securities of their respective IPO notes have given a “Subscribe” score to the provide.

Motilal Oswal Financial Services in its IPO word stated “Bikaji with its industry leading position is well placed to capture the high growth snacks market. Upcoming new manufacturing facilities, expansion of distribution base and strengthening of product/geographic portfolio could propel earnings growth. Despite high competition, we expect Bikaji to do well given the strong positioning of its brand and products. However, it is valued at 98xFY22 P/E which seems expensive. Thus, we suggest investors to Subscribe for listing gains.”

Geojit Research in its report famous, “At the upper price band of ₹300, BFIL is available at a P/E of 98.5x (FY22), which appears expensive compared to its peers. Considering its consistent top-line growth, industry leading position, future expansion plans, new product launches, investments in strengthening the brand recall and good future prospects for the packaged food business, we assign a “Subscribe” score on a brief -term foundation for high-risk buyers.”