Bikaji Foods International Limited IPO
(i) In the late 80s, Shri Shivratan Agarwal decided to walk his path and create a new identity for himself, this lead to the birth of the brand Bikaji. At the time when the technology to produce Bhujia on a large scale was unthought of, Shri Agarwal successfully laid the foundation of his dream venture. Not only, he ventured across the world to find and co-invent the right technology for producing bhujia; but he also managed to find an easy to remember name for the brand, that would easily connect with the consumers.
The name Bikaji is derived from Bika Rao- the founder of Bikaner and Ji, used as a mark of respect in India. Shri Agarwal’s vision was to give the world, a taste of Aslee Parampara. He desired to reach every consumer with authentic Indian taste, that reflects India’s culture and values. Over the years, Bikaji has managed to win hearts across the globe, with its power of ethnic-snacking. Today, Bikaji stands for authentic Indian taste, with diverse products and innovative packaging, adding to its commitment of taking Aslee Indian taste to the world. Bikaji
(ii) Infrastructure
a) Bikaji Foods has four state-of-the-art manufacturing facilities which hold a total manufacturing capacity of 400 TPD, producing 300 products covering a wide range of Bhujia, Namkeen’s, Sweets, Papad, Western Snacks, Cookies, RTE, frozen foods amongst others; makes it one of the largest manufacturers of ethnic snacks.
b) All the manufacturing facilities are set up in the hub of Ethnic Foods market with manpower with the experience of more than 40 years.
c) Manufacturing facilities comprises 18 production halls, to manufacture different categories of products in different manufacturing setups, separated physically to ensure the best hygiene, uniformity and authenticity of the product.
d) These production halls have 20 Frying Lines, 6 Roasting Lines and 140 Packing Machines operating completely online.
(iii) Products
a) Bhujia
They are the largest manufacturer of Bikaneri Bhujia in the ethnic snack industry, with a production capacity of 100 MT/day. There are 50 traditional Bikaneri Bhujia kettles, equipped with the latest technology to maintain the Ethnic Authentic Taste of Bikaneri Bhujia, which are made by the manual process of extrusion through the hand. This also preserves the many generations-old art of making Bikaneri Bhujia by skilled manpower. To increase the scale and quantity of Bikaneri Bhujia, they have a fully automated production line dedicated to Bikaneri Bhujia manufacturing.
b) Rasgulla
First in the industry to manufacture Rasgulla on a Fully Automated manufacturing line with best-in-class tech software embedded like SCADA.
c) Papad
They are the leading manufacturer of Papad, producing 20 MT of Handmade & Crispy Papad every day, empowering women across Rajasthan. Currently, 3000+ women workers freelance with us for papad production.
Competitive Strengths:
- The well-established brand with pan-India recognition.
- Strategically located, large-scale sophisticated manufacturing facilities with stringent quality standards.
- Extensive pan-India and global distribution network, arrangements with reputed retail chains, and growing eCommerce and exports channel.
- Strategic arrangements with retail chains in India and international markets.
- Significant multi-product export sales.
Objects of the Bikaji Foods International Limited IPO:
Bikaji Foods International Limited IPO Details:
Open Date: | Nov 03 2022 |
Close Date: | Nov 07 2022 |
Total Shares: | 29,373,984 |
Face Value: | ₹ 1 Per Equity Share |
Issue Type: | Book Built Issue |
Issue Size: | 873.72 Cr. |
Lot Size: | 50 Shares |
Issue Price: | ₹ 285-300 Per Equity Share |
Listing At: | NSE,BSE |
Listing Date: | Nov 16 2022 |
Promoters And Management:
Financials of Bikaji Foods International Limited IPO:
Bikaji Foods International Limited Financials | |||||||
Fig in Cr. | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
Income | |||||||
Operating Revenue | 1610 | 1,311 | 1,073 | 902 | 781 | 610 | 550 |
Other Income | 10 | 11 | 10 | 10 | 5 | 3 | 3 |
Total Income | 1621 | 1,322 | 1,083 | 912 | 786 | 613 | 553 |
Expenditure | |||||||
Cost of Materials Consumed | 1136 | 909 | 721 | 637 | 549 | 448 | 410 |
Purchase of Stock-in-Trade | 43 | 31 | 23 | 10 | 11 | 0 | 0 |
Change in Inventories | -8.8 | -4 | 1 | -2 | -2 | -2 | -1 |
Employees Benefit Expenses | 90 | 70 | 77 | 67 | 38 | 26 | 23 |
Other Expenses | 211 | 159 | 158 | 98 | 84 | 63 | 56 |
Operating Profit | 149 | 146 | 93 | 94 | 100 | 74 | 62 |
OPM | 9.2% | 11.14% | 8.68% | 10.36% | 12.81% | 12.13% | 11.30% |
Depreciation | 38 | 33 | 34 | 22 | 17 | 12 | 7 |
Finance Cost | 6 | 3 | 5 | 4 | 5 | 0 | 0 |
Total Expenditure | 1516 | 1,202 | 1,019 | 835 | 702 | 548 | 495 |
Profit Before Tax | 76 | 90 | 64 | 76 | 82 | 64 | 58 |
Tax Expenses | 20 | 29 | 8 | 25 | 29 | 21 | 17 |
Profit After Tax | 82 | 81 | 56 | 51 | 53 | 44 | 41 |
NPM | 5.0% | 6.86% | 5.25% | 5.65% | 6.76% | 7.18% | 7.51% |
EPS | 3.15 | 3.71 | 23.18 | 21.09 | 22.91 | 18.76 | 17.68 |
Comparison With Peers:
Peers | Revenue (Cr) | PAT(Cr) | 3 Year Returns | Free Cash generated in 3 years | ROE | Mcap (Cr) | P/E |
Bikaji Foods | 1600 | 82 | NA | 23 | 10% | 7500 | 95 |
Prataap Snacks | 1400 | 3 | -2% | 75 | 0.48% | 2000 | 293 |
Nestle | 14,000 | 2100 | 16% | 5800 | 94.25% | 200000 | 83 |
Britannia | 14,000 | 1500 | 11% | 3650 | 58.64% | 90000 | 62 |
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1. IIFL has invested ~120 Crores in Bikaji Food in 2018 by buying 971,895 at Rs. 1225 per share.
2. After that there is a split of shares on Oct-21 from FV=10 to FV=1. So, IIFL now have 9718950 Shares at Rs. 122.5 per share.
3. In this IPO, IIFL is selling 31,10,056 shares out of 97,18,950 Shares it is holding in the company.
4. Profit generated in the investment for IIFL is 33% CAGR.
*Greetings from Concept IR*
*Bikaji Foods International Limited – Physical Analysts’ & Brokers’ Meet 2022*
The Board of Directors of *Bikaji Foods International Limited* cordially invites you to its Analysts’ & Brokers’ Meet for the announcement of its forthcoming Initial Public Offering (IPO) on *Monday, October 31st, 2022 at 04:30 pm*
*RHP Link:*
https://www.sebi.gov.in/filings/public-issues/oct-2022/bikaji-foods-international-limited-rhp_64463.html
*Venue:*
Regal Room- Trident Hotel, Nariman Point, Mumbai
*Company Spokespersons:*
1. Shiv Ratan Agarwal, Chairman
2. Deepak Agarwal, Managing Director
3. Rishabh Jain, Chief Financial Officer
4. Manoj Verma, Chief Operating Officer
*BRLM’s:*
Axis Capital Limited, JM Financial Limited, IIFL Securities Limited, Intensive Fiscal Services Private Limited and Kotak Mahindra Capital Company Limited are the book running lead managers to the issue
*About the Company:*
Bikaji Foods International 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 Indian organised snacks market. (Source: F&S Report. Shiv Ratan Agarwal launched the Bikaji brand in the year 1993 with an in-depth understanding of Indian tastes and preferences. The company as of June 30, 2022, has operations in 23 states and four union territories in India. The company also exports its products to 21 international countries, including North America, Europe, the Middle East, Africa, and Asia Pacific, accounting for 3.20 percent of total food product sales. Bikaji Foods’ product range includes six principal categories: bhujia, namkeen, packaged sweets, papad, western snacks as well as other snacks which primarily include gift packs (assortment), frozen food, mathri range, and cookies.
*Entry strictly by official invite only*