Bikaji Foods International, the third largest ethnic snacks company in India, on Monday fixed the price band for its forthcoming initial public offer (IPO) at Rs 285-300 a piece. At the upper price band, the issue size comes in at Rs 881.22 crore.
The anchor book for the IPO will open on November 2, Wednesday. The issue will open for subscription for investors on Thursday and will conclude on Monday, November 10. The IPO listing is likely by November 16.
The offer is purely an offer for sale (OFS) of 29,373,984 shares. Selling shareholders include Shiv Ratan Agarwal (up to 2,500,000 shares), Deepak Agarwal (up to 2,500,000 shares) India 2020 Maharaja (up to 12,110,967 shares), Intensive Softshare (up to 50,000 shares), IIFL Special Opportunities Fund (up to 3,110,056 shares), among others.
Last heard, the IPO was commanding a grey market premium (GMP) of Rs 70 in the grey market.
Bikaji Foods has four manufacturing facilities, with a total manufacturing capacity of 400 TPD, producing 300 products such as Bhujia, Namkeen, papad, Western snacks and cookies amongst others. Bhujia accounts for nearly 35 per cent of its sales.
Bikaji as a brand was launched by Shiv Ratan Agarwal in 1993. The brand has a market leadership in the ethnic snacks market in Rajasthan, Assam, and Bihar. Bikaji operated in 23 states and four union territories as of June 30. It also exports its products to 21 international countries, which account for 3.2 per cent of its total sales.
As far as the company’s financials are concerned, Bikaji’s revenue from operations climbed 22.90 per cent yoY to Rs 1,610.96 crore in FY22 compared with Rs 1,310.75 crore in FY21, primarily due to increase in volume and realisation of products, in particular bhujia, namkeen, papad, western snacks and packaged sweets.
Its net profit stood at Rs 76.03 crore in FY22. For the three months ending June 30, revenue from operations stood at Rs 419.16 crore while the net profit was at Rs 15.70 crore.
JM Financial, Axis Capital, IIFL Securities, Intensive Fiscal Services and Kotak Mahindra Capital Company are the book running lead managers to the issue.
Also read: Snack giant Bikaji Foods files for Rs 1,000 crore IPO