Bikaji Foods IPO

Bikaji Foods International limited is one of India’s largest fast-moving consumer goods businesses with a global presence, offering Indian snacks and sweets, and they are among the fastest-growing firms in the Indian organised snacks industry. Bikaji Foods IPO will hit the stock market in 03 November 2022.

About Bikaji Foods

Bikaji Foods International limited was the largest manufacturer of Bikaneri bhujia in Fiscal 2021, with an annual production capacity of 26,690 tonnes, and the second largest manufacturer of handcrafted papad, with an annual production capacity of 9,000 tonnes. (Sources: F&S Report)

They are also one of the largest producers of packaged rasgulla, with a capacity of 24,000 tonnes per year, as well as soan papdi and gulab jamun, with annual capacities of 23,040 and 12,000 tonnes, respectively. (Sources: F&S Report)

Bikaji Foods International limited is among the first companies in the Indian packaged snack business to offer a contemporary touch to traditional Indian snacks while still keeping regional flavours to meet changing client tastes in India and around the globe.

History

Their ancestry and history can be traced all the way back to Mr. Gangabishan Agarwal, the originator of the Haldiram brand. Mr. Shiv Ratan Agarwal (founder & Promoter), his grandson, carried on his tradition and gained vast experience in the Indian ethnic foods market.

With a thorough awareness of Indian tastes and preferences, Mr. Shiv Ratan Agarwal developed the Bikaji brand in 1993.

They have rapidly grown their footprint throughout India, with operations in 22 states & 3 union territories, and have acquired market dominance in the ethnic snacks industry in their key states of Rajasthan, Assam, and Bihar.

They have shipped their products to 35 nations throughout the world, including North America, Europe, the Middle East, Africa, and the Asia Pacific.

Products and Sales

Bhujia, namkeen, packaged sweets, papad, western snacks, and other snacks, which generally include gift packs (assortment), frozen food, mathri range, and cookies, are among their six main product categories of Bikaji foods.

They sold over 250 products under the Bikaji brand in the six months ending September 30, 2021. They feel we have positioned their brand as the preferred snacking brand for families at home.

Sales of their family pack products (i.e. packs valued at more than 10) were 5,430.74 million, 6,407.36 million, 8,185.86 million, and 4,646.32 million in Fiscal 2019, 2020, and the six months ended September 30, 2021, respectively, and reflected 60.47 percent, 59.76 percent, 62.64 percent, and 60.57 percent of their food product sales in those periods.

Bikaji Foods IPO

Bikaji Foods International Limited, headquartered in Bikaner has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 29,373,984 equity shares on 22 February 2022.

The offer doesn’t includes any fresh issue and there is offer for sale (OFS) of 29,373,984 equity shares by the promoters mentioned in the DRHP. They are not looking for any Pre-IPO placement in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	30-Sep-21	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	1,066.24	817.15	676.64	630.90
Total Revenue	777.13	1,322.21	1082.90	910.65
Profit After Tax	40.93	90.34	56.37	50.93

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	3.71	3.71	3
Financial Year 2020	2.32	2.32	2
Financial Year 2019	2.11	2.11	1
Weighted Average	2.98	2.98
30 Sep. 2021	1.71	1.71

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

The following are among the quality elements that go into determining the Offer Price:

1. A well-known brand with widespread recognition across India.
2. Product portfolio with a wide range of consumer groups and marketplaces.
3. Large-scale, complex production facilities with high quality requirements that are strategically positioned.
4. A vast pan-India and worldwide distribution network, as well as partnerships with reputable retail chains and a rising e-commerce and exports channel.
5. In India, there is a large distribution network.
6. Strategic partnerships with Indian and worldwide retail chains.
7. E-commerce is becoming more popular.
8. Export sales of a variety of products are significant.
9. Reliable financial results.
10. Promoters and top management with a lot of experience.

Bikaji Foods International Peer Comparison

S. No.	Face Value	Company Name	PE
1	5	Prataap Snacks Limited	122.8
2	2	DFM Foods Limited	49.3
3	1	Britannia Industries Limited	44.9
4	10	Nestle India Limited	83.2

Note

• All of the financial data for the listed industry peers listed above is consolidated (except DFM Foods Limited and Nestle India Limited, which are on a standalone basis) and sourced from stock exchange submissions accessible on www.bseindia.com for the Financial Year ending March 2021 (except Nestle India Limited, which is for the Financial Year ending December 2020).
• The P/E Ratio was calculated by dividing the closing market price of equity shares on February 18, 2022 by the Basic EPS.

Bikaji Foods IPO Details

IPO Opening Date	03 November 2022
IPO Closing Date	07 November 2022
Issue Type	Book Building
Face Value	1 per share
IPO Price	285 to 300 per equity share
Market Lot	50
Min Amount	15000
Listing At	BSE, NSE
Issue Size	873.72 Crore
Fresh Issue	0
Offer for Sale	29,373,984 Equity Shares

Bikaji Foods IPO Date

Bikaji Foods International IPO opening date is 03 November 2022, and the closing date is 07 November 2022. The Bikaji Foods International issue may list in November 2022.

IPO Opening Date	03 November 2022
IPO Closing Date	07 November 2022
Basis of Allotment Date	11 November 2022
Initiation of Refunds	11 November 2022
Credit of Shares to Demat Account	14 November 2022
IPO Listing Date	16 November 2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	75	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	10	Minimum 1 lot based on availability

Bikaji Foods International IPO Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Bikaji Foods International IPO.

Bikaji Foods IPO GMP

Bikaji Foods International IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
November 2022
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Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Bikaji Foods International IPO Review

Bikaji Foods International IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Bikaji Foods IPO is good or bad.

Bikaji IPO Risk

1. The success of their firm is dependent on the reputation and consumer goodwill connected with their brand.
2. They rely heavily on the sale of their bhujia goods to survive.
3. The current and ongoing impact of the COVID-19 pandemic on their business and operations, especially the influence on consumers’ ability or desire to purchase their products, may have a negative impact.
4. Contamination or deterioration of their products could expose them to legal liability, harm their reputation, and hurt their bottom line.
5. For a portion of their business, they rely on a small number of super-stockists and direct wholesalers.
6. Inadequate or interrupted supply of raw materials and packaging materials, as well as pricing fluctuations, could have a negative impact on their business.

Other Threats

1. Termination of their agreements with the contract production plants could have a negative impact on their operations.
2. Exports to international customers account for a chunk of their revenue.
3. Some of their business records aren’t easily verifiable.
4. There may have been some non-compliances or claimed non-compliances in the past with respect to public filings for corporate activities conducted by their Firm.
5. Some of their items are sold directly to retail chains in India, as well as in markets outside of India where they are exported.
6. They have engaged in linked party transactions in the past and may do so again in the future.
7. Several legal and regulatory processes are or may be pending against their company, subsidiaries, promoters, directors, & group companies.

Bikaji Foods International IPO Brokerage views

Here is the views of different stock brokers regarding this Bikaji Food International IPO:

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Bikaji Foods International IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
November 2022	1
November 2022	2
November 2022	3

Bikaji Foods Management

Mr. Deepak Agarwal (Their Managing Director and Promoter) has played a key role in overseeing the company’s rapid growth, executing strategic marketing and commercial strategies, and focusing on financial performance.

Individuals with extensive industry experience across industries, as well as considerable business skills in consumer, legal, sales & marketing, and administration, make up their Board of Directors.

They have a strong senior management team with deep expertise in the consumer goods and food and beverage industries, which they feel will help them to seize future growth possibilities.

Avendus Future Leaders Fund I, Axis Asset Management Company Limited, Lighthouse Funds, IIFL Asset Management Limited, and Intensive Softshare Private Limited are among the private equity funds and investors who has funded Bikaji foods.

Promoters

• Shiv Ratan Agarwal
• Deepak Agarwal
• Shiv Ratan Agarwal (HUF)
• Deepak Agarwal (HUF)

Promoter’s Holding

Pre Issue Share Holding	76.50%
Post Issue Share Holding

Bikaji Foods International Prospectus