The Initial Public Offering (IPO) of Bikaji Foods International Ltd will open for public subscription on Thursday, November 3, 2022 and the three-day issue will expire on Monday, November 7, 2022. The price range has been set in the range of INR 285 to INR 300 per share for the sale of its initial stake at a value of Rs 881 crore.
The Bikaji Foods initial public offering will consist of Rs 2.93 crore per share in the public issue, which will be a pure offer for sale (OFS) by the promoters and existing shareholders. Since the initial public offering is completely OFS, the company will not receive any proceeds from the issuance. At the higher end of the price range, the IPO is expected to fetch Rs 881 crore.
According to market watchers, Bikaji Foods shares command a premium (GMP) of USD 52 in the current gray market. On November 16, 2022, the company's shares are anticipated to list on the two main stock markets, BSE and NSE.
Given ongoing top line growth, market leadership, future development plans, the launch of new products, expenditures made to improve brand memory, and favourable outlook for the packaged food industry, we assign a short-term "underwriting" rating to Geojit brokerage," Geojit brokerage said in the offering note. General for high risk investors.
"Bikaji Foods is a reputable brand in the market for ethnic snacks. Bikaji has a large distribution network throughout India. The top line has grown reasonably well. However, margin pressure drastically reduced the bottom line. On the valuation front, the P/L at the top band is around 95x while the P/BV is around 9x. "The issue price seems exorbitant," said Abhay Doshi, co-founder of Unlisted Arena.
Bikaji Foods International Ltd is one of India's largest consumer goods brands with an international presence and sells Indian snacks and sweets. Chef Ratan Agarwal, founder of Bikaji Foods International, is the grandson of founder Haldiram Gangabishan Agarwal. In 1986, Shiv Ratan Agarwal founded the business. Initially, it was incorporated under the name Shivdeep Industries Ltd. The business was renamed Bikaji Foods in 1993.
Its product range includes six main categories: Bhujia, Namkeen, Packaged Sweets, Papads, Western Snacks and Other Snacks which mainly include Gift Boxes (Assorted), Frozen Foods, Mathiri Collection and Cookies.
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