Bikaji Foods IPO Day 2: The initial public offer (IPO) of Bikaji Foods International Ltd is open for subscription and it will remain open for bidding till November 7, 2022.
Bikaji Foods IPO: Subscription Status
After day one of subscription, Bikaji Foods IPO subscription status informs that public issue has been subscribed 0.67 times whereas its retail portion has been subscribed 1.10 times
Bikaji Foods IPO GMP
Shares of Bikaji Foods are available at a premium of Rs 27, which is Rs 25 lower from its Thursday GMP of Rs 52 and Rs 43 lower from its Wednesday GMP of Rs 70.
Bikaji Foods IPO: Issue Price
Potential investors will be able to bid for Bikaji Foods shares in a price band of Rs 285-300 apiece under the IPO.
Bikaji Foods IPO: Lot size
Bidding will be possible in multiples of 50 shares — which translates to Rs 14,250-15,000 per lot.
Bikaji Foods IPO Financial performance
Bikaji Foods recorded a compound annual growth rate of 22.44 per cent in revenue from operations during FY20-FY22, coming in at Rs 1,610.96 crore for FY22. Profit and EBITDA (earnings before interest, taxes, depreciation and amortisation) in the same period grew at a CAGR of 16.13 per cent and 21.45 per cent (at Rs 76 crore and Rs 139.5 crore in FY22, respectively), but the EBITDA margin contracted to 8.66 per cent in FY22 against 11.04 per cent in FY21 and 8.8 per cent in FY20.
There was volatility in return on equity (RoE) and return on capital employed (RoCE). RoE stood at 9.5 per cent in FY22 against 14.89 percent in FY21 and 10.65 per cent in FY20, while RoCE was 13.89 per cent against 20.88 per cent and 12.79 per cent in the same period.
Most of the company’s business contribution comes from two segments, bhujia and namkeen which accounted for around 70 per cent of revenue, followed by packaged sweets with nearly 13 per cent of total sales.
Should you Subscribe to Bikaji Foods’ IPO?
Giving ‘subscribe’ tag to Bikaji Foods IPO, brokerage firm Geojit said, “Considering its consistent top-line growth, industry leading position, future expansion plans, new product launches, investments in strengthening the brand recall and good future prospects for the packaged food business, we assign a “Subscribe” rating on a short -term basis for high-risk investors.”
Bikaji Foods is the third-largest ethnic snacks company in India with an international footprint, selling Indian snacks and sweets, and is the second fastest growing company in the organised snacks market. The company has operations across 23 states and four Union Territories and is also exporting products to other countries.
Apart from rich valuations, two key concentration risks are significant dependence on the sale of Bhujia and Namkeen products (70 per cent of sales) and sale from three core markets of Rajasthan, Assam and Bihar, which also amounted for 70 per cent of total sales.
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