Bikaji Foods International Ltd IPO

Upcoming

IPO Synopsis

Rajasthan-based, Bikaji Foods International, is coming up with an IPO worth Rs.1,000 crores. The firm has filed preliminary papers with SEBI to raise funds. 
The company plans an Offer-For-Sale to sell up to 2.94 crore shares. Both the promoters, Ratan Agarwal and Deepak Agarwal, are looking to offload up to 25 lakh company shares each. Other institutions participating in the OFS include India 2020 Maharaja, Ltd; Intensive Softshare Pvt Ltd, IIFL Special Opportunities Fund, IIFL Special Opportunities Fund - Series 2, IIFL Special Opportunities Fund - Series 3, IIFL Special Opportunities Fund - Series 4, IIFL Special Opportunities Fund - Series 5 and Avendus Future Leaders Fund I.
JM Financial, Axis Capital, IIFL Securities Ltd, Intensive Fiscal Services Pvt Ltd and Kotak Mahindra Capital Company are the book running lead managers to the issue.
 
Objective of the Issue
The proceeds from the issue will be used towards: 
1) the listing will enhance its visibility and brand image
2) to provide a public market for the equity shares in India.
 

About Bikaji Foods International Ltd

Bikaji Foods is one of India’s largest fast-moving consumer goods (“FMCG”) brands with an international footprint, selling Indian snacks and sweets, and are among the fastest growing companies in the Indian organised snacks market.
The product range includes six principal categories such as bhujia, namkeen, packaged sweets, papad, western snacks as well as other snacks which primarily includes gift packs (assortment), frozen food, mathri range and cookies.
The company is the largest manufacturer of Bikaneri bhujia with annual production of 26,690 tonnes, and we were the second largest manufacturer of handmade papad with an annual production capacity of 9,000 tonnes in Fiscal 2021 The company is also one of the largest manufacturers of packaged rasgulla with an annual capacity of 24,000 tonnes along with that of soan papdi and gulab jamun with annual capacity of 23,040 tonnes and 12,000 tonnes, respectively. 
The Rajasthan-based snack major is backed by investors like Avendus, Axis Asset Management, Lighthouse Funds, IIFL Asset Management and Intensive Softshare, among others. 
The company has six operating manufacturing facilities, four of which are located in Bikaner, Rajasthan and one each in Assam and Karnataka. It also has a contract manufacturing unit in West Bengal and a small facility in Mumbai catering to restaurant sales. Bikaji intends to establish and operationalise five more manufacturing facilities, one in Rajasthan catering to frozen snacks and sweet products owned and operated by the company besides others across Rajasthan, Bihar and Uttar Pradesh, where it will produce namkeen and western snacks. 
The company, which boasts around 250 varieties of products, was launched in 1993 and has operations in 22 states and three union territories in India. Further, it exports products to 35 countries, including those in North America, Europe, the Middle East, Africa, and Asia Pacific region.

Profit and Loss

Balance Sheet

Particulars (in Rs. Crores) FY21 FY20 FY19
Revenue 1310.7 1074.6 901.4
EBITDA 144.8 94.6 93.3
PAT 90.3 56.4 50.9
Particulars (in Rs. Crores) FY21 FY20 FY19
Total Assets 817.1 676.6 630.9
Share Capital 24.3 24.3 24.3
Total Borrowings 86.2 52.3 72.3
Particulars (in Rs. Crores) FY21 FY20 FY19
Net cash generated from / (used in) operating activities 121.99 54.66 68.71
Net cash from / (used in) investing activities -118.87 -57.52 -91.51
Net cash flow from / (used in) financing activities -9.06 -31.46 39.76
Net increase (decrease) in cash and cash equivalents -5.95 -34.32 16.95

Peer Comparison

Name of the Company Total Revenue Basic EPS Nav Rs. per share PE RoNW%

Bikaji Foods International Limited

1310.7 3.71 24.85 NA 14.9%
Prataap Snacks Limited 1171.1 6.04 265.69 122.8 2.3%
DFM Foods Limited 524.1 5.72 35.42 49.3 17.7%
Nestle India Limited 13350.0 215.98 209.44 83.2 105.8%
Britannia Industries Limited 13136.1 77.43 147.29 44.9 46.6%


Key Points

  • Strengths

    1) Well-established brand with pan-India recognition
    2) Diversified product portfolio focused on various consumer segments and markets
    3) Strategically located, large scale sophisticated manufacturing facilities with stringent quality standards
    4) Extensive pan-India and global distribution network, arrangements with reputed retail chains and growing ecommerce and exports channel

  • Risks

    1) Inability to maintain or enhance the popularity of our “Bikaji” brand 
    2) Slowdown or interruption to the manufacturing operations or under-utilization of the existing or future manufacturing facilities 
    3) Any contamination or deterioration of our products could result in legal liability, and damage the reputation 
    4) Inability to expand or effectively manage the growing superstockist and distributor network, or any disruptions in the distribution chain 
    5) Inadequate or interrupted supply and price fluctuation of our raw materials and packaging materials

How to apply for an IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

  • Approve the mandate request on your UPI and funds will be blocked

FAQs

What is the price band of the IPO?

Bikaji Foods IPO details are yet to be announced.

When does the Bikaji Foods issue open and close?

Bikaji Foods IPO details are yet to be announced.

What is the size of Bikaji Foods IPO issue?

The IPO comprise of an Offer-For-Sale to sell up to 2.94 crore shares.

Who are the promoters/key personnels of Bikaji Foods?

Bikaji Foods is promoted by Shiv Ratan Agarwal, Deepak Agarwal, Shiv Ratan Agarwal (HUF) and Deepak Agarwal (HUF).

What is the allotment date of Bikaji Foods?

Bikaji Foods IPO details are yet to be announced.

What is the Bikaji Foods listing date?

Bikaji Foods IPO details are yet to be announced.

Who are the book runners for Bikaji Foods IPO?

JM Financial, Axis Capital, IIFL Securities Ltd, Intensive Fiscal Services Pvt Ltd and Kotak Mahindra Capital Company are the book running lead managers to the issue.

What is the objective of the issue?

The proceeds from the issue will be used for: 
1) the listing will enhance its visibility and brand image
2) to provide a public market for the equity shares in India

How to apply for the Bikaji Foods IPO?

To apply for the IPO, follow the steps given below

1) Login to your 5paisa account and select the issue in the current IPO section
2) Enter the number of lots and price at which you wish to apply for
3) Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
4) You will receive a mandate notification to block funds in your UPI app

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