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Bikaji Foods Filed DRHP with SEBI to Launch its IPO

16 January 20235 mins read by Angel One
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One of India’s leading FMCG firms, Bikaji Foods, has filed DRHP with capital market regulator SEBI to go public. The company has plans to raise funds by selling about 2.93 crore shares in this public offering. As per various market sources, this IPO is likely to be worth about Rs. 1,000 crores.

Additionally, this will be a standalone offer for sale, which will include dilution of stake from current shareholders. Hence, the company will not receive any proceeds from this issue. The company promoters Shiv Ratan Agarwal and Deepak Agarwal will be a part of this OFS. They will sell 25 lakh shares each.

Apart from that, other investors will offload via this offer for sale are –

  1. IIFL Special Opportunities Fund will offload 1.1 crore shares

  2. India 2020 Maharaja, i.e. PE firm Lighthouse will divest 1.21 crore shares

  3. Avendus Future Leaders Fund will sell 12 lakh shares

Further details of this IPO are yet to be public; hence, interested individuals can stay subscribed to the Angel One Blogs for all the latest updates on Bikaji Foods IPO.

About the Company – Bikaji Foods

The journey of Bikaji Foods started when the grandson of Haldiram’s founder Gangabishan Agarwal, i.e. Shiv Ratan Agarwal, started his own company in 1986. Initially, the company started its operations under the name of Shivdeep Industries Ltd. But, it changed to Bikaji Foods in 1993.

Currently, Bikaji Foods is one of India’s leading producers and sellers of snacks and sweets, with an international footprint. According to this DRHP, currently, Bikaji Foods controls 8.7% of India’s organised snacks market.

The product portfolio of Bikaji Foods is primarily segregated into 6 primary categories. These are –

  1. Bhujia

  2. Packaged sweets

  3. Namkeen

  4. Western snacks

  5. Papad

  6. Others include frozen foods, cookies, mathri, and gift packs

As of September 2021, Bikaji Foods has sold more than 250 products under its brand.

To meet its demand for products and maintain quality, the company has established 6 manufacturing facilities in different parts of India. Out of these six, four facilities are in Bikaner, Rajasthan, one in Guwahati, Assam, and one in Tumakuru, Karnataka.

Apart from these, the company has a contract manufacturing facility in Kolkata, West Bengal, and one in Mumbai, Maharashtra.

A network of modern facilities like this has enabled Bikaji Foods to become the largest producer of ‘Bikaneri Bhujia’. In FY 2021, it has an annual production capacity of 26,690 tonnes. Moreover, it produced about 9,000 tonnes of handmade papad in this fiscal year of 2021.

Financial Highlights of Bikaji Foods

The revenue from operations of Bikaji Foods grew 22% between the financial year of 2020 and 2021. In FY 2020, it was Rs. 1,074.55 crores, which became Rs. 1,310.75 crores in FY 2021. This growth is mainly due to the overall growth of the portfolio.

Additionally, the net profit of Bikaji Foods has been on the rise in the past couple of years. It has recorded a 60% growth to Rs. 90.34 crores in FY 2021 from Rs. 56.37 crores in FY 2020. Lastly, in the 6 months ending on September 2021, the revenue from operations was Rs. 771.73 crores, and the net profit was Rs. 40.93 crores.

Bottom Line

Bikaji Foods is a leading manufacturer of snacks and sweets and one of the few in its segment that has managed to build a presence in the international market. Nonetheless, individuals who are planning to invest in this IPO must go through company financials and other details before taking a call.

Frequently Asked Questions

  1. Who are the lead managers of this Bikaji Foods IPO?

The lead managers of this public issue are Axis Capital, JM Financial, Kotak Mahindra Capital Company, Intensive Fiscal Services and IIFL Securities.

  1. Who is the registrar of this Bikaji Foods IPO?

The details about this Bikaji Foods IPO is not available yet.

  1. What is the price band of this Bikaji Foods IPO?

No details about the price band of this Bikaji Foods IPO is available yet.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.

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