Raised Rs 262 crore from anchor investors including Eastspring Investments, Morgan Stanley, Government of Singapore, Nomura, Bay Capital and Kotak Funds besides others
MUMBAI, NOVEMBER 03, 2022 (GPN): Bikaner-Rajasthan based snack company Bikaji Foods International Limited, the third largest ethnic snacks company in India and the second fastest growing company in the Indian organised snacks market has received bids of 1,38,54,550 shares against the offered 2,06,36,790 equity shares, at a price band of ₹285-300, according to the data available on the stock exchanges. Overall the issue was subscribed 0.67 times on the first day of bidding.
The Retail Portion saw a blockbuster response and was subscribed 1.10 times. Non-Institutional segment saw a response of 0.58 times. Employee portion was subscribed 0.52 times. The reserved portion for qualified institutional buyer portion saw a subscription of 0.01 times. The issue kicked off for subscription on Thursday, November 03, and will close on Monday, November 07, 2022.
Bikaji Foods International Ltd raised Rs 262 crore from foreign investors and institutions namely Eastspring Investments, Morgan Stanley, Government of Singapore, Nomura, Blackrock, Neuberger Berman, Carmignac, Goldman Sachs, Bay Capital and Kotak Funds and domestic institutional investors i.e Tata Mutual Fund, Aditya Birla Sun Life, Canara Robeco, ICICI Prudential MF, WhiteOak Capital, Nippon Life India, Kotak MF, Quant MF, HDFC MF and Edelweiss MF and insurance companies namely Max Life and ICICI Pru Life.
Leading brokers like KR Choksey, AUM, Angel One and Ventura Securities have given a “Subscribe” rating to BIKAJI Foods’ IPO.
According to brokerages, the subscribe ratings can be justified based on the following: Bikaji Foods has an established market leadership in the ethnic snacks segment in states of Rajasthan (45%), Assam (58%) and Bihar (29%), It also has a well-diversified product basket of more than 250 products, Expansion across India with operations in 23 states and 4 union territories, Export to 21 international countries which include North America, Europe, Middle East, Africa and Asia, it has scaled up a sizable pan-India distribution network over the years. As of June 30, 2022 it has got 6 depots, 38 super stockiest, 416 direct & 1956 in direct distributor and the capex cycle of the company is almost over and there would not be any major capital outlay in the next 3-4 years.
The issue with a face value of Re 1 per equity share is an entirely an offer for sale (OFS) up to 29,373,984 by existing shareholders and promoter group entities.
JM Financial Limited, Axis Capital Limited, IIFL Securities Limited, Intensive Fiscal Services Private Limited and Kotak Mahindra Capital Company Ltd are the book running lead managers to the issue.
Company Information
Mr. Shiv Ratan Agarwal launched the Bikaji brand in 1993 and has established market leadership and reach in the ethnic snacks market in Rajasthan, Assam, and Bihar. Bikaji has gradually expanded its footprint across India, with operations in 23 states and four union territories as of June 30, 2022 and also exporting its products to 21 international countries, including North America, Europe, the Middle East, Africa, and Asia Pacific, accounting for 3.20 percent of its food product sales.
Bikaji today stands to be the largest producer of Bikaneri bhujia with annual production of 29,380 tonnes, and the second largest manufacturer of handmade papad with an annual production capacity of 9,000 tonnes in Fiscal 2022 as mentioned in the F&S report quoted in its DRHP. It is also one of India’s major producers of packaged sweets, including rasgulla, gulab jamun, and soan papdi and is known to be a pioneer in developing and reinventing classic Indian snacks with a contemporary taste to meet changing customer demands in India and abroad.
The table below shows subscription data for all the categories of investors:
| BIKAJI FOODS INTERNATIONAL LIMITED
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| Sr.No. | Category | No.of shares offered / reserved | No. of shares bid for | No. of times of total meant for the category |
| 1 | Qualified Institutional Buyers (QIBs) | 58,24,797 | 32,150 | 0.01 |
| 1(a) | Foreign Institutional Investors (FIIs) | – | – | – |
| 1(b) | Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies) | – | – | – |
| 1(c) | Mutual Funds | – | – | – |
| 1(D) | Others | – | 32,150 | – |
| 2 | Non Institutional Investors(NIIS) | 43,68,598 | 25,29,200 | 0.58 |
| 2.1 | Non Institutional Investors(Bid amount of more than Ten Lakh Rupees) | 29,12,398 | 11,61,500 | 0.40 |
| 2.1(a) | Corporates | – | 46,650 | – |
| 2.1(b) | Individuals (Other than RIIs) | – | 10,27,700 | – |
| 2.1(c) | Others | – | 87,150 | – |
| 2.2 | Non Institutional Investors(Bid amount of more than Two Lakh Rupees and upto 10 lakh rupees) | 14,56,200 | 13,67,700 | 0.94 |
| 2.2(a) | Corporates | – | 2,800 | – |
| 2.2(b) | Individuals (Other than RIIs) | – | 11,96,400 | – |
| 2.2(c) | Others | – | 1,68,500 | – |
| 3 | Retail Individual Investors (RIIs) | 1,01,93,395 | 1,11,63,400 | 1.10 |
| 3(a) | Cut Off | – | 98,48,250 | – |
| 3(b) | Price Bids | – | 13,15,150 | – |
| 4 | Employee Reserved | 2,50,000 | 1,29,800 | 0.52 |
| 4(a) | Employee (Cut off) | – | 1,16,900 | – |
| 4(b) | Employee (Price) | – | 12,900 | – |
| 5 | Reservation PortionShareholder | – | – | – |
| 5(a) | RPS (Cut off) | – | – | – |
| 5(b) | RPS (Price) | – | – | – |
| Total | 2,06,36,790 | 1,38,54,550 | 0.67 | |
Ends.
BSE + NSE Cumulative Demand Live Link:
https://www.bseindia.com/markets/publicIssues/CummDemandSchedule.aspx?ID=5921&status=L
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