Bikaji Foods IPO Details, Schedule, Allotment Link, Financials, Latest GMP

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About Company

The company is engaged in selling Indian snacks and sweets which include six principal categories; bhujia, namkeen, packaged sweets, papad, western snacks as well as other snacks that primarily includes gift packs (assortment), frozen food and cookies.

As of September 30, 2021, Bikaji Foods has operations across 22 states and three union territories in India. And also exports its products to 35 countries internationally including countries in North America, Europe, the Middle East, Africa, and the Asia Pacific representing 4.60% of the company’s sales of food products in the six months ending September 30, 2021.

IPO Details

IPO DateNov 3, 2022 to Nov 7, 2022
Listing Date16 November 2022
Price Band₹285 to ₹300 per share
Lot Size50 Shares
Issue Size₹881.22 Cr (Only Offer for Sale)
Minimum Application₹15,000
GMP (Last Updated 2 Nov)₹73 per share
QIB Quota50% of the Issue Size
NII Quota15% of the Issue Size
Retail Quota35% of the Issue Size

Schedule

Issue Period3rd November to 7th November 2022
Finalization of Allotment11th November 2022
Initiation of Refunds14th November 2022
Credit of Shares15th November 2022
Date of Listing16th November 2022
Mandate end date22nd November 2022
Anchor Investors Lock-In End Date7th December 2022

Objects of the Issue

The selling shareholders are entitled to the entire proceeds of the Offer after deducting the Offer expenses, and relevant taxes/ The company will not receive any proceeds from the IPO.

Financial Highlights

ParticularsFY20FY21FY22
Revenue from Operations (₹ Crores)1,074.551,310.751610.96
EBITDA (₹ Crores)94.6144.77139.54
EBITDA Margin (%)8.80%11.04%8.66%
Net Profit (₹ Crores)56.3790.3476.03
RONW (%)10.65%14.93%9.51%
ROCE (%)12.79%20.88%13.89%

Strengths

  1. Well-established brand: The company sells all products under a well-established Bikajo brand with a focus on a diverse range of quality products, authentic ethnic Indian taste, and effective pricing strategies covering all key price points. These qualities have helped them develop strong brand recognition and consumer loyalty.

  2. Extensive distribution network: The company has developed a large pan-India distribution network. They had six depots, 38 super stockists, 416 direct and 1,956 indirect distributors that work with super stockists, located across 23 states and four union territories in India ( June 2022).

Risks

  1. Dependency on a single segment: The financial performance of the company is dependent on its bhujia products. On average, the segment contributes around 35% of the company’s total sales. If they are unable to evolve consumer tastes, preferences, and demand for particular products, the financials will be impacted. 

  2. Investments in unsecured debt instruments: The Company has made investments in unsecured debt instruments of Hanuman Agrofood in the form of compulsorily convertible debentures amounting to Rs 106.23 crore, and optionally convertible debentures of Dadiji Snacks Private Limited amounting to Rs 11.5 crore. 

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