Priyanka Vartak | Maharashtra Times.com | Updated: 5 Nov 2022, 11:31 am
Bikaji Foods IPO Subscription Status: Bikaji Foods International Limited’s initial public offer (IPO) was subscribed 1.48 times on the second day of the offer on Friday. The snacks and sweets maker’s Rs 881.22 crore IPO saw bids for 3,04,44,000 shares against an offer of 2,06,36,790 shares, according to data available on the NSE. The company’s IPO is purely based on Offer for Sale (OFS).
The IPO is seeking a valuation of 98.5 times FY22 GPS, which looks expensive compared to its peers, according to experts. Given Bikaji’s consistent top-line growth, industry-leading position, future expansion plans, new product launches, investments to strengthen brand recall and good future prospects for the packaged food business, it is a good choice for high-risk investors. Meanwhile, ‘Subscribe’ rating is given on short-term basis.
The company has reserved half of its issue size to qualified institutional investors, 15 percent to non-institutional investors and the remaining 35 percent to retail investors. Bikaji Foods International is looking to raise Rs 881.22 crore through the offer, of which Rs 262 crore has already been raised through anchor bookings on November 2. This is purely an offer for sale, so the company will not receive any money and the funds will go to the selling shareholders. Meanwhile, the company’s stock price has been fixed at Rs 285-300 per share.
Due to changing lifestyles, rising incomes and urbanization, India’s packaged food industry has experienced tremendous growth in the last five years. As of June 30, 2022, the company has sold more than 300 products under the Bikaji brand and the company exports products to 21 international countries including North America, Europe, Middle East, Africa and Asia Pacific. Besides, Bikaji Foods has six operational manufacturing facilities, including one in Bikaner (Rajasthan), one in Guwahati (Assam), four in Tumakuru (Karnataka) through subsidiary Patent Food Processors.