Bikaji Foods makes a crunchy debut..

Bikaji Foods makes a crunchy debut; scrip closes above its issue price

Mumbai, November 16, 2022: Bikaji Foods International Limited is the third largest ethnic snacks company in India with an international footprint, selling Indian snacks and sweets, and are the second fastest growing company in the Indian organised snacks market (“The Company”) makes a crunchy debut on the exchanges to close above its issue price.

The scrip listed Rs 321.15 per share on BSE and Rs 322.80 per share on NSE, at a premium of 7.05% and 7.60% respectively. The company's share price closed at Rs 317.45 per share on the BSE, a 5.82% premium, and at Rs 317.50 per share on the NSE, a 5.83% premium.

As per NSE, the total quantity traded stood at 274.37 lakh shares, on BSE the total Quantity stood at 20.96 lakh shares. Total Turnover (BSE+NSE) on Day 1 stood at Rs 960.76 crore.

Mr. Deepak Agarwal, Managing Director – Bikaji Foods International Limited said “I would like to express my gratitude to all the stakeholders that supported us during the IPO phase as we started a new journey with the successful listing of Bikaji. It is a moment of great pride and honour for me. Our family just grew bigger today and we understand the responsibility. We will aim to grow the Investors’ wealth over a period of time with good return on their investment. We promise to work even harder and ensure that the company displays strong results in the coming years. The opportunity is immense and we expect an increase in demand for our products in the coming decade; and this will help Bikaji to deliver strong returns for our Investors.”

The Market Capitalization of the Company at today’s closing price stood at Rs. 7920.69 Crore as per BSE and Rs. 7921.94 Crore as per NSE.

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.

 

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 RHP. 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.

Bhujia, namkeen, packaged sweets, papad, western snacks, and other snacks, which principally include gift packs (assortment), frozen food, mathri range, and cookies, are among the company's six main product categories. It has recently launched Bikaji Café and Bikaji Funkeen brands to promote its western snack segment and has also launched an online retail platform via its website in February 2020 besides a mobile applicable application in June 2020 which allow consumers to browse its selection of products.

The company's seven operating manufacturing facilities, four of which are located in Bikaner (Rajasthan), one in Guwahati (Assam), and one in Tumakuru (Karnataka), held through its subsidiary Petunt Food Processors Private Limited to cater to the southern markets in India and one facility in Muzaffarpur (Bihar) held through its subsidiary Vindhyawasini Sales Private Limited to cater to its core market of Bihar.

Additionally it has a contract manufacturing unit in Kolkata (West Bengal), which would predominantly serve eastern India and two contract manufacturing agreements on an exclusive basis with one of the Group Company, Hanuman Agrofood for a contract manufacturing facility located at Bikaner and with another third-party contract manufacturer for a contract manufacturing facility located at Kanpur, Uttar Pradesh.

Bikaji’s revenue from operations grew 22.90% to Rs. 1,610.96 crore for the fiscal 2022 against Rs. 1,310.75 crore for the fiscal 2021, primarily due to increase in sale of food products, and increase in volume and realisation of products, in particular, bhujia, namkeen, papad, western snacks and packaged sweets, while its net profits stood at Rs. 76.03 crore in FY22. For the three months ending June 30, 2022, revenue from operations stood at Rs. 419.16 crore and net profit was Rs. 15.70 crore.

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.