Bikaji Meals Worldwide Ltd IPO GMP: The preliminary public providing (IPO) of snacks and sweets maker Bikaji Meals Worldwide opened for subscription on Thursday, November 3, 2022. It opened for public subscription at 10 am and was subscribed round 21 per cent by 12:06 pm on the primary day of bidding.
It obtained whole bids for 44,26,750 shares throughout each the inventory exchanges towards 2,06,36,790 shares on provide, knowledge from Nationwide Inventory Trade (NSE) confirmed.
The Rs 881 crore Bikaji Meals IPO might be out there for subscription until Monday, November 7, 2022, and the worth band has been fastened at Rs 285-300 per share.
The IPO is solely an offer-for-sale (OFS) of 29,373,984 fairness shares by its promoters and current shareholders. The corporate won’t obtain any proceeds from the problem.
Among the many promoting shareholders are each the promoters – Shiv Ratan Agarwal and Deepak Agarwal, who wish to promote as much as 25 lakh firm shares every. Aside from the promoters, current investor promoting shareholders are – India 2020 Maharaja Ltd, Intensive Softshare Pvt Ltd, IIFL Particular Alternatives Funds and Avendus Future Leaders Fund I.
Half of the problem dimension has been reserved for certified institutional consumers (QIBs), 15 per cent for non-institutional buyers and the remaining 35 per cent for retail buyers.
Bikaji Meals Worldwide is the third largest ethnic snacks firm in India with a global footprint, promoting Indian snacks and sweets, and are the second quickest rising firm within the Indian organised snacks market. The corporate claimed they have been largest producer of Bikaneri bhujia with annual manufacturing of 29,380 tonnes in Fiscal 2022 (FY22) and through the identical interval they have been additionally the second largest producer of handmade papad with an annual manufacturing capability of 9,000 tonnes.
Aside from snacks, the corporate can also be a number one maker of packaged rasgulla, soan papdi and gulab jamun.
“We’re additionally the third largest participant within the organised sweets market with annual capability of 24,000 tonnes for packaged rasgulla, 23,040 tonnes for soan papdi and 12,000 tonnes for gulab jamun,” the corporate stated in its pink herring prospectus (RHP).
Their whole product vary contains six principal classes: bhujia, namkeen, packaged sweets, papad, western snacks in addition to different snacks which primarily embody present packs (assortment), frozen meals, mathri vary and cookies. By the tip of June 2022 quarter, Bikaji Meals Worldwide bought greater than 300 merchandise beneath the Bikaji model.
Traders who want to subscribe to Bikaji Meals IPO can bid in lots of 50 fairness shares and multiples thereafter. On the higher worth band, they are going to be shelling out Rs 15,000 to get a single lot of Bikaji Meals Worldwide. The shares might be listed on each BSE and NSE.
The candidates additionally should be aware that the cut-off time for UPI mandate acceptance is Monday, November 7, 2022, upto 5:00 pm, the final day of IPO bidding. Additional bids with confirmed standing of mandate quantity blocked (RC100) shall be thought of as legitimate functions and therefore, buyers are suggested to submit their UPI functions in IPO nicely upfront to keep away from any final minute technical/systemic constraints that will hamper their potential to take part in IPOs by efficiently accepting the mandate.
Axis Capital, Intensive Fiscal Companies Pvt Ltd, JM Monetary, IIFL Securities and Kotak Mahindra Capital are the book-running lead managers to the provide whereas Hyperlink Intime India is the registrar of the problem.
Earlier than heading into the IPO, Bikaji Meals Worldwide on Wednesday raised over Rs 262 crore (Rs 2,62,11,58,200) from 36 anchor buyers in lieu of 87,37,194 fairness shares at Rs 300 every, knowledge from the inventory exchanges confirmed.
Eastspring Investments, BNP Paribas, Morgan Stanley, Authorities of Singapore, Tata Mutual Fund (MF), ICICI Prudential MF, Kotak MF, HDFC MF and Edelweiss MF are among the many anchor buyers.
The anchor buyers embody Authorities of Singapore, ICICI Prudential Mutual Fund, HDFC MF, Aditya Birla Solar Life MF, WhiteOak Capital, Nomura, BlackRock, Goldman Sachs, Morgan Stanley, ICICI Prudential Life Insurance coverage Firm, Max Life Insurance coverage Firm, Tata MF, Kotak MF and Edelweiss MF amongst others.
Commenting on the Bikaji IPO, Ravi Singh, vp and head of analysis at Share India Securities stated, “Bikaji Meals is a well-known model in ethnic snacks and namkeen market. It’s community distribution and prime line has proven regular development and additional growth are on playing cards. Nonetheless, it has posted declined margins for FY22 on greater gross sales and this margin strain has scaled again the underside line development. Contemplating, the corporate’s FY23 valuations, the IPO is extremely priced. Bikaji has at all times carried out nicely as in comparison with its friends by way of income and PAT development. We suggest to subscribe the IPO.”
The analysis groups at Geojit Monetary Companies, LKP Securities, Motilal Oswal Monetary Companies and Reliance Securities of their respective IPO notes have given a “Subscribe” score to the provide.
Motilal Oswal Monetary Companies in its IPO be aware stated “Bikaji with its business main place is nicely positioned to seize the excessive development snacks market. Upcoming new manufacturing amenities, growth of distribution base and strengthening of product/geographic portfolio may propel earnings development. Regardless of excessive competitors, we count on Bikaji to do nicely given the sturdy positioning of its model and merchandise. Nonetheless, it’s valued at 98xFY22 P/E which appears costly. Thus, we advise buyers to Subscribe for itemizing beneficial properties.”
Geojit Analysis in its report famous, “On the higher worth band of ₹300, BFIL is on the market at a P/E of 98.5x (FY22), which seems costly in comparison with its friends. Contemplating its constant top-line development, business main place, future growth plans, new product launches, investments in strengthening the model recall and good future prospects for the packaged meals enterprise, we assign a “Subscribe” score on a brief -term foundation for high-risk buyers.”