Bikaji Foods International Ltd raises Rs 262 crore from anchor investors

Bikaji Foods International Limited is the third largest ethnic snacks company in India with an international footprint, selling Indian snacks and sweets, and the second fastest growing company in the Indian organised snacks market has garnered Rs 262.11 crore from anchor investors ahead of its initial share sale that opens for public subscription on Thursday, November 03, 2022. The company informed the bourses that it allocated 87,37,194 shares at Rs. 300 per share on Wednesday, November 02, 2022, to anchor investors.

Foreign Portfolio Investors and Institutions who participated in the anchor were Eastspring Investments, BNP Paribas, Morgan Stanley, Government of Singapore, Nomura, Blackrock, Neuberger Berman, Carmignac, Goldman Sachs, Bay Capital and Kotak Funds.

In addition, shares have been allocated to domestic funds i.e Tata Mutual Fund, Aditya Birla Sun Life, Canara Robeco, ICICI Prudential MF, WhiteOak Capital, Nippon Life India, Kotak MF , Quant MF, HDFC MF, Edelweiss MF were the mutual funds that participated in the anchor book.

The Insurance companies who participated were Max Life and ICICI Pru Life.

Out of the total allocation of 8,737,194 equity shares to the anchor investors, 3,683,565 equity shares were allocated to 10 mutual funds through 17 schemes amounting to Rs 110.51 crore i.e. 42.16% of the Total Anchor Book Size.

Mr. Shiv Ratan Agarwal launched the Bikaji brand in 1993 and has established market leadership and reach in the ethnic snacks market in Rajasthan, Assam, and Bihar. Bikaji has gradually expanded its footprint across India, with operations in 23 states and four union territories as of June 30, 2022 and also exporting its products to 21 international countries, including North America, Europe, the Middle East, Africa, and Asia Pacific, accounting for 3.20 percent of its food product sales.

Bikaji today stands to be the largest producer 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 as mentioned in the F&S report quoted in its DRHP. It is also one of India's major producers of packaged sweets, including rasgulla, gulab jamun, and soan papdi and is known to be a pioneer in developing and reinventing classic Indian snacks with a contemporary taste to meet changing customer demands in India and abroad.

Bikaji's revenue from operations grew 22.90% to Rs. 1610.96 crore for the fiscal 2022 against Rs. 1310.75 crore for the fiscal 2021, primarily due to increase in sale of food products, and increase in volume and realisation of products, in particular, bhujia, namkeen, papad, western snacks and packaged sweets, while its net profits stood at Rs 76.03 crore in FY22. For the three months ending June 30, 2022, revenue from operations stood at Rs 419.16 crore and net profit was Rs 15.70 crore.

JM Financial Limited, Axis Capital Limited, IIFL Securities Limited, Intensive Fiscal Services Private Limited and Kotak Mahindra Capital Company Ltd are the book running lead managers to the issue.

IPO Details

The issue with a face value of Re 1 per equity share is an entirely an offer for sale (OFS) up to 29,373,984 by existing shareholders and promoter group entities.

The offer of sale comprises up to 2,500,000 equity shares by Shiv Ratan Agarwal, up to 2,500,000 equity shares by Deepak Agarwal ("The Promoter Selling Shareholders"), up to 12,110,967 equity shares by India 2020 Maharaja Limited, up to 50,000 equity shares by Intensive Softshare Private Limited, up to 3,110,056 equity shares by IIFL Special Opportunities Fund, up to 1,995,552 equity shares by IIFL Special Opportunities Fund-Series 2, up to 976,179 equity shares by IIFL Special Opportunities Fund-Series 3, up to 2,753,339 equity shares by IIFL Special Opportunities Fund-Series 4 and up to 2,162,226 equity shares by IIFL Special Opportunities Fund-Series 5 ("IIFL Funds"), up to 1,215,665 equity shares by Avendus Future Leaders Fund I (The "Investor Selling Shareholders").

The Company is proposing to open its initial public offering of Equity Shares (the "Offer") on Thursday, November 03, 2022, and closes on Monday, November 07, 2022. The price band for the Offer has been determined at Rs 285 - Rs 300 per equity share.

The IPO will fetch Rs 881.22 crore at the upper end of the price band.

Investors can bid for a minimum of 50 equity shares and in multiples of 50 equity shares thereafter.

The Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended, read with Regulation 31 of the SEBI ICDR Regulations.

The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders.

SRF Ltd approves capex proposal of Rs. 604 crores The Board of Directors of SRF Ltd at its meeting held on November 3, 2022 has approved projects for setting up of four new plants and capacity enhancement of an existing plant to produce various speciality chemicals at an estimated cost of Rs. 604 Crores.

The proposed capacity addition of ~ 4000 MTPA will be added within 10 to 12 months.

The investment of Rs. 604 crores will be raised through mix of debt and internal accruals.

Source : Equity Bulls

Keywords

BikajiFoodsInternational IPO Subscription AnchorInvestors