About Company
The company is engaged in selling Indian snacks and sweets which include six principal categories; bhujia, namkeen, packaged sweets, papad, western snacks as well as other snacks that primarily includes gift packs (assortment), frozen food and cookies.
As of September 30, 2021, Bikaji Foods has operations across 22 states and three union territories in India. And also exports its products to 35 countries internationally including countries in North America, Europe, the Middle East, Africa, and the Asia Pacific representing 4.60% of the company’s sales of food products in the six months ending September 30, 2021.
IPO Details
| IPO Date | Nov 3, 2022 to Nov 7, 2022 |
| Listing Date | 16 November 2022 |
| Price Band | ₹285 to ₹300 per share |
| Lot Size | 50 Shares |
| Issue Size | ₹881.22 Cr (Only Offer for Sale) |
| Minimum Application | ₹15,000 |
| GMP (Last Updated 2 Nov) | ₹73 per share |
| QIB Quota | 50% of the Issue Size |
| NII Quota | 15% of the Issue Size |
| Retail Quota | 35% of the Issue Size |
Schedule
| Issue Period | 3rd November to 7th November 2022 |
| Finalization of Allotment | 11th November 2022 |
| Initiation of Refunds | 14th November 2022 |
| Credit of Shares | 15th November 2022 |
| Date of Listing | 16th November 2022 |
| Mandate end date | 22nd November 2022 |
| Anchor Investors Lock-In End Date | 7th December 2022 |
Objects of the Issue
The selling shareholders are entitled to the entire proceeds of the Offer after deducting the Offer expenses, and relevant taxes/ The company will not receive any proceeds from the IPO.
Financial Highlights
| Particulars | FY20 | FY21 | FY22 |
| Revenue from Operations (₹ Crores) | 1,074.55 | 1,310.75 | 1610.96 |
| EBITDA (₹ Crores) | 94.6 | 144.77 | 139.54 |
| EBITDA Margin (%) | 8.80% | 11.04% | 8.66% |
| Net Profit (₹ Crores) | 56.37 | 90.34 | 76.03 |
| RONW (%) | 10.65% | 14.93% | 9.51% |
| ROCE (%) | 12.79% | 20.88% | 13.89% |
Strengths
- Well-established brand: The company sells all products under a well-established Bikajo brand with a focus on a diverse range of quality products, authentic ethnic Indian taste, and effective pricing strategies covering all key price points. These qualities have helped them develop strong brand recognition and consumer loyalty.
- Extensive distribution network: The company has developed a large pan-India distribution network. They had six depots, 38 super stockists, 416 direct and 1,956 indirect distributors that work with super stockists, located across 23 states and four union territories in India ( June 2022).
Risks
- Dependency on a single segment: The financial performance of the company is dependent on its bhujia products. On average, the segment contributes around 35% of the company’s total sales. If they are unable to evolve consumer tastes, preferences, and demand for particular products, the financials will be impacted.
- Investments in unsecured debt instruments: The Company has made investments in unsecured debt instruments of Hanuman Agrofood in the form of compulsorily convertible debentures amounting to Rs 106.23 crore, and optionally convertible debentures of Dadiji Snacks Private Limited amounting to Rs 11.5 crore.
