Bikaji Foods International IPO is the latest IPO in the market that I may invest in. Bikaji Foods DRHP is approved by SEBI in October 2022. The company is coming up with an offer for sale of up to 29,373,984 Equity Shares through the initial public offering (IPO). The face value of each equity share will be INR 1 per equity share.
Investors as well as promoters are selling part of their stakes in the company. The promoters – Shiv Ratan Agarwal, and Deepak Agarwal are selling up to 25,00,000 equity shares each. Investors such as India 2020 Maharaja Limited, Intensive Softshare Private Limited, and IIFL Special Opportunities Fund are selling the rest of the equity shares from OFS.
Utilization of Net Proceeds from Bikaji Foods IPO
Bikaji Foods will not receive any amount from the offer for sale. However, the company will enhance its visibility and brand image as well as provide a public market for Equity Shares in India through Bikaji Foods IPO.
Bikaji Foods products and Company Overview
Bikaji Foods was founded by Shivratan Agarwal, grandson of Haldiram’s founder Gangabhishan Agarwal, in 1987. The company was incorporated as “Shivdeep Industries Limited” at Bikaner, Rajasthan on October 27, 1995. The name again changed to “Bikaji Foods International Limited” on October 5, 2011, and a certificate of change of name was issued by the RoC.
- Bikaji Foods International is engaged in manufacturing and marketing a range of food products – bhujia, namkeen, packaged sweets, papad, western snacks, frozen food, mathri range, and cookies.
- The company is the third largest ethnic snacks company in India with a global presence.
- Bikaji Foods is the largest manufacturer of Bikaneri bhujia with an annual production of 29,380 tonnes, and the second largest manufacturer of handmade papad with an annual production capacity of 9,000 tonnes in FY 2022.
- It is also the third largest company in the organized sweets market in India with an annual capacity of 24,000 tonnes for packaged rasgulla, 23,040 tonnes for soan papdi, and 12,000 tonnes for gulab jamun.
- Bikaji Bikaner is a well-known brand and a household name in India – 300 products sold under this brand. Bhujia and Namkeen are the most sold products of the company.
- The company started free home delivery of its products across India.
- The company exported to 21 countries, including countries in North America, Europe, the Middle East, Africa, and Asia Pacific.
- The exports contribute approx. 3.2% of the total sales of food products in FY2022.
Who is the owner of Bikaji Foods?
Bikaji Foods International Limited is led by a highly experienced senior management team. The Promoters of the Company are:
- Shivratan Agarwal
- Deepak Agarwal
- Shiv Ratan Agarwal (HUF)
- Deepak Agarwal (HUF)
Bikaji Foods International Limited Turnover
- Bikaji Foods International has been a consistent performer in terms of financial returns over the years.
- Revenue from the operation consistently grew from FY20 to FY22.
- EBITDA and PAT have also been growing consistently over the years.
- A zero-debt company with higher ROE and ROCE.
- EPS has also been going up during this time.
- Strong Net cash flow from operating activities.
- However, total borrowing has gone up. As of June 30, 2022, Bikaji foods had total borrowings of INR 1,563.94 million.
Bikaji Foods International IPO – Valuation Parameters
| All amounts in INR Million (Year ended March 31) | 2020 | 2021 | 2022 |
|---|---|---|---|
| Revenue Operation | 10,745.51 | 13,107.49 | 16,109.61 |
| Total Income | 10,829.01 | 13,222.12 | 16,214.51 |
| Total Assets | 6,766.43 | 8,171.48 | 11,021.31 |
| Total Borrowings | 523.02 | 861.53 | 1,412.26 |
| EBITDA | 946.00 | 1,447.65 | 1,395.44 |
| EBITDA Margin (%) | 8.80% | 11.04% | 8.66% |
| Profit After Tax | 563.71 | 903.36 | 760.27 |
| PAT Margin (%) | 5.25% | 6.89% | 4.72% |
| Earnings Per equity Share-Diluted | 2.32 | 3.71 | 3.15 |
| Net Cash from Operating Activities | 606.74 | 1,171.94 | 574.76 |
| Debt/Equity Ratio (%) | 0.10 | 0.14 | 0.17 |
| RoE % | 10.65% | 14.89% | 9.50% |
| ROCE (%) | 12.79% | 20.88% | 13.89% |
| RoNW% | 10.65% | 14.93% | 9.51% |
Investing in Bikaji foods international IPO – Know why?
- Bikaji Foods International is a well-diversified company in terms of its geographic market.
- Expanding network: Have 38 super stockists, 416 direct and 1,956 indirect distributors located across 23 states and four union territories in India.
- Strong brand name: The company is in the traditional food and food packing business. Continuously expanding its product portfolio.
- Consistent performance in revenue and profit. Revenue grew by CAGR 19.8% over Fiscal 2018 – Fiscal 2022 and a growth of 9.08% in EBITDA over the same period.
- Better return on net worth, EPS, and Net asset value (NAV) in comparison to its peers Prataap Snacks Limited and DFM Foods Limited.
- The organized Indian Savoury Snacks market is expected to grow by CAGR 15% from INR 423 billion in FY22 to INR 739 billion in FY26.
- The packaging food segment is expected to do well due to increased shelf life while retaining the authentic taste of traditional foods.
- Strengthening its position in the e-commerce business. Started home delivery across India.
- However, increasing borrowing might be a risk if it continues to go up.
- I am investing in the company during IPO. Certainly, one will get listing gain from this IPO.
Bikaji Foods International IPO Details
| Bikaji foods IPO Parameters | IPO Details |
|---|---|
| Bikaji foods IPO Date | November 3, 2022 to November 7, 2022 |
| Bikaji foods IPO Price band | INR 285 – INR 300 |
| Bikaji foods IPO Allotment date | November 11, 2022 |
| Refunds Initiation date | November 14, 2022 |
| Credit of Shares to Demat Account | November 15, 2022 |
| Bikaji foods IPO listing date | November 16, 2022 |
| Fresh Issue | No Fresh Issue |
| Offer for Sale | 29,373,984 Equity Shares |
| Equity Shares outstanding prior to the Offer | 249,509,880 Equity Shares |
| Equity Shares outstanding after IPO | 249,509,880 Equity Shares |
| Minimum bid (lot size) | 50 shares (INR 15,000) |
| Retail Allocation | 35% |
| Face Value | INR 1 per share |
| Listing on | BSE & NSE |
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Bikaji Foods International Limited head office and lead managers of Bikaji Foods IPO
| Contact Details | Lead Managers |
| Plot No. E-558-561, C -569-572, E -573-577, F-585-592 Karni Extension, RIICO Industrial Area, Bikaner – 334 004 Rajasthan, India Email: cs@bikaji.com Telephone: +91 151 – 2250350 www.bikaji.com | 1. JM Financial Limited 2. KOTAK MAHINDRA CAPITAL COMPANY LIMITED 3. Axis Capital Limited 4. IIFL Securities Limited 5. Intensive Fiscal Services Private Limited |
Bikaji Foods International IPO Allotment Status
Bikaji Foods International IPO allotment will be available on Link Intime’s website. To know your allotment status, get ready with your PAN number and click on this link.
Bikaji foods international ltd IPO GMP (Grey Market Premium)
We do not believe that the grey market premium (GMP) of any company will have an impact on the listing gain of an IPO. However, this is an indicator that reflects the demand for the IPO in the market before the listing. Below is the Bikaji foods IPO GMP.
| Date | Bikaji foods international ltd IPO GMP | IPO Price |
| 29-10-2022 | INR 90 | INR 300 |