One of the biggest fast-moving consumer goods (“FMCG”) brands in India, Bikaji Foods IPO is all set to make a debut on the stock market with its IPO with issue size of . The company’s product line is divided into six main categories: cookies, bhujia, namkeen, packaged sweets, papad, western snacks, and other snacks, which mostly consist of gift packs (assortment), frozen food, cookies, and the mathri range. On November 3, 2022, the company is scheduled to make its stock market debut.
Bikaji Food International IPO Details
|IPO Date||Nov 3, 2022 to Nov 7, 2022|
|Face Value||₹1 per share|
₹285 to ₹300 per share
|Issue Size||29,373,984 shares of ₹1|
(aggregating up to ₹881.22 Cr)
|Offer for Sale||29,373,984 shares of ₹1|
(aggregating up to ₹881.22 Cr)
|Issue Type||Book Built Issue IPO|
|QIB Shares Offered||Not more than 50% of the Net Offer|
|NII (HNI) Shares Offered||Not less than 15% of the Net Offer|
|Retail Shares Offered||Not less than 35% of the Net Offer|
|Company Promoters||Shiv Ratan Agarwal, Deepak Agarwal, Shiv Ratan Agarwal (HUF) and Deepak Agarwal (HUF) are the company promoters.|
Bikaji Food International IPO Tentative Dates
|Opening Date||Nov 3, 2022|
|Closing Date||Nov 7, 2022|
|Basis of Allotment||Nov 11, 2022|
|Initiation of Refunds||Nov 14, 2022|
|Listing Date||Nov 16, 2022|
Bikaji Food International Industry Overview
The worth of India’s packaged food industry is currently $4,240 billion. It has expanded dramatically over the past five years as a result of urbanisation, increased earnings, and changing lifestyles. Retail sales of packaged foods totalled 2,434 billion in Fiscal 2015, with a CAGR of roughly 8.3% from Fiscal 2015 to Fiscal 2022. It is projected to increase by 8% CAGR over the following five years to reach $5,798 billion.
The packaged food market was estimated to be worth $4.24 trillion in 2022. Dairy products help with Snacks and the sweets and biscuits segments came in at 32.3% and 14.5%, respectively, while snacks accounted for 38.8%, or 1.64 trillion.
Bikaji Food International Company Overview
Bikaji is the second-fastest growing firm in the Indian organized snacks market and the third-largest ethnic snacks company in India with an international presence. With an annual production capacity of 9,000 Tonnes, Bikaji was the second-biggest producer of handmade papad in Fiscal 2022 and the leading producer of Bikaneri bhujia with a capacity of 29,380 tones. With an annual capacity of 24,000 tonnes for packaged rasgulla, 23,040 tonnes for soan papdi, and 12,000 tonnes for gulab jamun, they were also the third-largest player in the organised sweets market.
In 1993, Shiv Ratan Agarwal, who had a thorough awareness of Indian tastes and preferences, founded the Bikaji brand. Bikaji operations are now spread throughout 23 states and four union territories in India as of June 30, 2022, having over the years-built market leadership in the ethnic snacks industry in core areas of Rajasthan, Assam, and Bihar with significant reach.
It shipped goods to 21 foreign nations during the three months that ended on June 30, 2022, including those in North America, Europe, the Middle East, Africa, and Asia Pacific. This accounted for 3.20% of total sales of food items at that time.
Bikaji Food International IPO Objectives
The Selling Shareholders will be entitled to the entire proceeds of the Offer after deducting the Offer expenses and relevant taxes thereon. The Company will not receive any proceeds from the Offer.
Bikaji Food International Financials
Bikaji Food International Strengths
- Well-established brand with pan-India recognition
- Has a large distribution network – five depots, 43 super stockists, 438 direct and 1,644 indirect distributors
- Has a diversified product portfolio with more than 250 products across segments
Bikaji Food International Weaknesses
- Significantly depends on the sale of its bhujia products. Around 36% of the total revenue came from bhujia products in the first six months of FY22
- Inadequate or interrupted supply and price fluctuation of raw materials and packaging materials
- The business is manpower intensive. It has more than 3,200 staff on the payroll
Company Contact Information
Bikaji Foods International Limited
F 178 & E 188 Bichhwal Industrial Area,
Bikaner – 334 006
Phone: +91 151 – 2250350
Bikaji Foods IPO Registrar
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Bikaji Foods IPO Lead Manager(s)
- JM Financial Consultants Private Limited
- Axis Capital Limited
- IIFL Securities Ltd
- Intensive Fiscal Services Private Limited
- Kotak Mahindra Capital Company Limited