Bikaji Foods IPO Super Hit As Its Bhujia

Bikaji Foods IPO Super Hit As Its Bhujia

Issue subscribed 26.67 times, Retail investors swing in well

Bikaji Foods is the third largest ethnic snacks company in India and the second fastest growing company in the organised snacks market.

MUMBAI, Nov 07 (The CONNECT) – The IPO of Bikaner-Rajasthan based snack company Bikaji Foods International Limited was subscribed 26.67 times as the issue received bids of 55,04,00,900 equity shares against the offered 2,06,36,790, according to the data available on the stock exchanges.

The issue by the third largest ethnic snacks company in India and the second fastest growing company in the Indian organised snacks market was an entirely an offer for sale (OFS) by existing shareholders and promoter group entities. With a face value of Re 1 per equity share, the management fixed the price band of ₹285-300.

The reserved portion for qualified institutional buyer portion saw a subscription of 80.63 times and the Non-Institutional segment 7.10 times. The Retail Portion subscribed 4.77 times while the employee portion 4.38 times.

JM Financial Limited, Axis Capital Limited, IIFL Securities Limited, Intensive Fiscal Services Private Limited and Kotak Mahindra Capital Company Ltd are the book running lead managers to the issue.

Shiv Ratan Agarwal launched the Bikaji brand in 1993 and has established market leadership and reach in the ethnic snacks market in Rajasthan, Assam, and Bihar. Bikaji has gradually expanded its footprint across India, with operations in 23 states and four union territories as of June 30, 2022 and also exporting its products to 21 international countries, including North America, Europe, the Middle East, Africa, and Asia Pacific, accounting for 3.20 percent of its food product sales.

Bikaji today stands to be the largest producer of Bikaneri bhujia with 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 mentioned in the F&S report quoted in its DRHP. It is also one of India's major producers of packaged sweets, including rasgulla, gulab jamun, and soan papdi and is known to be a pioneer in developing and reinventing classic Indian snacks with a contemporary taste to meet changing customer demands in India and abroad.

Bikaji’s revenue from operations grew 22.90% to Rs. 1610.96 crore for the fiscal 2022 against Rs. 1310.75 crore for the fiscal 2021, primarily due to increase in sale of food products, and increase in volume and realisation of products, in particular, bhujia, namkeen, papad, western snacks and packaged sweets, while its net profits stood at Rs 76.03 crore in FY22. For the three months ending June 30, 2022, revenue from operations stood at Rs 419.16 crore and net profit was Rs 15.70 crore.

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