Bikaji Foods IPO: GMP, other details as issue to open today. Should you subscribe?

 

• The price band of Bikaji Foods IPO has been fixed between ₹285 to ₹300 per share

The Initial Public Offering (IPO) of Bikaji Foods International Limited will open for public subscription on Thursday, November 3, 2022 and the three-day offering will end on Monday, November 7, 2022. The price band has been fixed in the range of ₹285 to ₹285. ₹881 crore - ₹300 per share for the opening share sale.

The IPO of Bikaji Foods consists of 2.93 crore shares in a public offering, which will be a pure offer for sale (OFS) by its promoters and existing shareholders. Since the IPO is purely OFS, the company will not get any proceeds from the issue. At the upper end of the price band, the IPO is expected to fetch ₹881 crore.

As per market observers, the shares of Bikaji Foods are commanding a premium (GMP) of ₹71 in the gray market today. The shares of the company are expected to be listed on the major stock exchanges BSE and NSE on Wednesday, November 16, 2022.

Considering its continued top-line growth, industry-leading position, future expansion plans, new product launches, investments in strengthening brand recall and good future prospects for the packaged food business, we are looking at this on a short-term basis. "Subscribe" rating. high risk investors,” said brokerage Geojit in an IPO note.

“Bikaji Foods is an established name in the ethnic snacks market. Bikaji has a large pan India distribution network. The top row has grown appropriately. However, margin pressure overtook the bottom line. On the valuation front, the asking p/e on the upper band is around 95x while the P/BV is around 9x. This issue looks very costly.

Bikaji Foods International Limited is one of India's largest fast-moving consumer goods brands, selling Indian snacks and sweets internationally. Shiv Ratan Agarwal, founder of Bikaji Foods International, is the grandson of Haldiram's founder Gangabishan Agarwal. Shiv Ratan Agarwal established the company in 1986. It was originally incorporated as Shivdeep Industries Limited. In 1993, the company's name was changed to Bikaji Foods.

Its product range includes six major categories: Bhujia, Namkeen, Packaged Sweets, Papad, Western Snacks and other snacks which mainly include Gift Packs (Assortment), Frozen Food, Mathri Range and Cookies.