"Bikaji Foods International Limited IPO - Motilal Oswal |"

Bikaji Foods International Limited IPO

Opening Date  03, November 2022
Closing Date 07, November 2022
Refund Initiation 14, November 2022
Listing Date 16, November 2022
Face Value ₹1 per equity share
IPO Price Band ₹285 to ₹300 per equity share
Minimum Order Quantity 50 Shares
Issue Size ₹881.22 Cr

 

The month of October 2022, saw a couple of IPOs getting listed in the secondary market. These were Electronics Mart India Ltd and Tracxn Technologies Ltd. Whereas Electronics Mart India Ltd proved to be a once in a lifetime opportunity, generating 43% listing gains, Tracxn Technologies also performed superbly, listing at 17% returns. The retail subscription for these IPOs saw an overwhelming response, describing that retail investors are eager to to invest. After Electronics Mart India Ltd, which received a whopping 20.77 times subscription from retail investors, all eyes are now aimed at Bikaji Foods International Ltd, which is going live with its IPO on 03rd November. Let’s learn in detail all its financials and if this IPO is worth investing in or not!

About the Company -

Incorporated in 1994, Bikaji International Foods Ltd is India's 3rd largest ethnic snacks company in India with an international footprint & 2nd fastest growing company in the Indian organized snacks market. The company's product range includes six principal categories: bhujia, namkeen, packaged sweets, papad, western snacks as well as other snacks which primarily include gift packs (assortment), frozen food, mathri range and cookies. In the six months that ended June 30, 2022, the company sold more than 300 products under the Bikaji brand.

The FMCG company has established a network of operations in the states of Rajasthan, Assam and Bihar and other parts of India.  In Q1FY22, Bikaji exported products to 21 international countries in North America, Europe, Middle East, Africa, and Asia Pacific.

The financials of the company for the last three years are detailed as below 

 

Particulars Three month period ended June 30, 2022 As of and for the Financial Year ended March 31
2022 2021 2020
 Equity share capital 25 25 24 24
 Networth 835 819 604 529
Total Borrowings 156 141 86 52
Revenue from Operations 419 1611 1311 1075
Profit/ (Loss) after Tax  16 76 90 56
EBITDA 31 140 145 95
Return on Equity 1.90% 9.50% 14.90% 10.70%
Earnings per share (₹/share, diluted) 0.65* 3.15 4 2
Return on Capital Employed 2.60% 13.90% 20.90% 12.80%
Net asset value per share 33 33 25 22

all numbers stated are in million.*not annualized

Bikaji Foods International Ltd details -

Let’s now move onto the main part of this article. Here, we’re going to be looking at some of the most important details of this upcoming IPO viz - Bikaji Foods International Ltd  date and its share price.

Bikaji Foods International Ltd date -

According to the Red Herring Prospectus filed by the company, the public issue of the equity shares is going live from November 03 and will be available for subscription until November 07, 2022.

Bikaji Foods International Ltd issue size -

The total issue size of the latest Bikaji Foods International Ltd is declared to be ₹881.22 crores. This is a total offer for sale. The company is offloading 29,373,984 equity shares in OFS.

50% of the offer is for QIBs (Qualified Institutional Buyers), 35% for retail investors, and the balance 15% for NIBs (Non-institutional Investors).

Bikaji Foods International Ltd share price

The price band of the company’s upcoming IPO is declared to range between ₹285 to ₹300 per equity share

Bikaji Foods International Ltd listing

Since the IPO of Bikaji Foods International Ltd  is from the mainboard, it would be listed on both - the National Stock Exchange (NSE) as well as the Bombay Stock Exchange (BSE)

Bikaji Foods International Ltd objectives

The net proceeds of the Issue, i.e. gross proceeds of the Issue are proposed to be utilized in the following manner:

  • To enhance its visibility and brand image
  • To provide a public market for the equity shares in India

Bikaji Foods International Ltd Strengths

  • Well established “Bikaji” brand with pan-India distribution network
  • Diversified product portfolio of more than 250 products
  • In FY22, Bikaji was the largest manufacturer of Bikaneri  bhujia with annual production of 29,380 tonnes
  • Amongst competitors, they are the market leaders in the family pack segment with 61% share of business coming from SKUs
  • Indian packaged food business estimated to grow at CAGR of 8% in next 5 yrs
  • Consistent Financial performance

Bikaji Foods International Ltd risks

  • Slowdown or interruption to the manufacturing operations
  • Intense competition in the Indian snack  segment , from various domestic and multinational companies in India
  • Inadequate or interrupted supply and price fluctuation of our raw materials and packaging material
  • Strict food safety and standards norms,  breach may impact business

Conclusion

If you wish to become a part of this exciting IPO opportunity, you will need to have an online demat and trading account, which will help you get shares of your favorite companies. To get an online DEMAT account for Free*, all you have to do is sign-up with Motilal Oswal and get started.

If you are an existing customer with Motilal Oswal, you can now invest in the IPOs in just one click through UPI payment!

It’s all easy. It’s all good.

 

Related articles: 5 Tips for Investing In IPOs | What's the big deal about IPOs | Clearing the confusion from IPOs | IPO in India- The future looks bright | Upcoming IPO

 

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