Bikaji Foods International Limited IPO

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(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:

The objects of the Offer are to (i) achieve the benefits of listing the Equity Shares on the Stock Exchanges; and (ii) carry out the Offer for Sale of up to 293,73,984 Equity Shares by the Selling Shareholders.

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:

Shiv Ratan Agarwal is the Chairman and Whole-time Director of the Company. He has been a director in the Company since its incorporation. He has not completed his formal education. He is currently serving as a director on the board of several companies, including Basant Vihar Hotels Private Limited and Mastkin Foods Private Limited. He has over 30 years of experience in the food industry, including ethnic snacks and sweets. Deepak Agarwal is the Managing Director of the Company. He has been a director in the Company since January 25, 2002. He has completed a post graduate programme in management (family managed business) from S.P. Jain Institute of Management & Research, Mumbai. He is currently serving as a director on the board of several companies, including Hanuman Agrofood Private Limited, Petunt Food Processors Private Limited, Mastkin Foods Private Limited and Vindhyawasini Sales Private Limited. He has approximately 20 years of experience in the food industry, including ethnic snacks and sweets. Shweta Agarwal is the Whole-time Director of the Company. She has been a director in the Company since November 20, 2006. She holds a bachelor’s degree in arts and a master’s degree in arts (English) from Maharshi Dayanand Saraswati University, Ajmer. She is currently serving as a director on the board of Bikaji Mega Food Park Private Limited and Petunt Food Processors Private Limited. She has approximately 16 years of experience in the food industry, including ethnic snacks and sweets.

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

Recommendation on Bikaji Foods International Limited IPO:

Review and Recommendation of Bikaji IPO by IZ team is 6/10 1. It is the third largest ethnic snacks company in India with an international footprint, selling Indian snacks and sweets, and are the second fastest growing company in the Indian organised snacks market. 2. In Fiscal 2022, Bikaji is the largest manufacturer of Bikaneri bhujia with annual production of 29,380 tonnes, and the second largest manufacturer of handmade papad with an annual production capacity of 9,000 tonnes in Fiscal 2022. 3. The 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. 4. Revenue has increased from 1000 Crores in Fy19 to 1600 Crores in Fy22. 5. PAT has increased from 56 Crores in Fy19 to 76 Crores in Fy22. 6. Valuation seems reasonable at Mcap of 7200 Crores.

Registrar of Bikaji Foods International Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Bikaji Foods International Limited F 196-199, F 178 & E 188 Bichhwal Industrial Area, Bikaner – 334 006 Phone: +91 151 - 2250350 Email: cs@bikaji.com Websitehttps://www.bikaji.com//

Discussion on Bikaji Foods International Limited IPO:

2 Comments

    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*

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