As of 12:30 pm on day 1, the issue has been subscribed 0.25 times with retail investors' category booked 0.35 times, BSE data showed.
Bikaji Foods IPO consists of 2.93 crore shares in the public issue, which will be a pure offer for sale (OFS) by its promoters and existing shareholders. Since the IPO is completely an OFS, the company will not receive 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, Bikaji Foods shares are commanding a premium (GMP) of ₹52 in the grey market today. The shares of the company are expected to list on leading stock exchanges BSE and NSE on Wednesday, November 16, 2022.
Considering its consistent top-line growth, industry leading position, future expansion plans, new product launches, investments in strengthening the brand recall and good future prospects for the packaged food business, we assign a “Subscribe" rating on a short -term basis for high-risk investors," said brokerage Geojit in an IPO note.
“Bikaji Foods is an established name in the ethnic snacks market. Bikaji has large pan India distribution network. The top line has grown reasonably. However, margin pressure scaled back the bottom line. On the valuation front, the asking p/e at the upper band is around 95x while P/BV is around 9 times. The issue looks richly priced," said Abhay Doshi, Co-founder, UnlistedArena.
Bikaji Foods International Ltd is one of India’s largest fast-moving consumer goods brands with an international footprint, selling Indian snacks and sweets. Founder of Bikaji Foods International Shiv Ratan Agarwal is the grandson of Haldiram's founder Gangabishan Agarwal. Shiv Ratan Agarwal founded the company in 1986. It was originally incorporated as Shivdeep Industries Ltd. In 1993, the company's name was changed to Bikaji Foods.
Its product range includes six principal categories: bhujia, namkeen, packaged sweets, papad, western snacks and other snacks which primarily includes gift packs (assortment), frozen food, mathri range and cookies.
