Bikaji Foods IPO: GMP steady ahead of subscription opening tomorrow
FMCG firm Bikaji Foods International’s three-day initial public offering (IPO) will open for public subscription i.e., November 3, 2022 and conclude on November 7, 2022. The price band has been fixed in the range of Rs 285 to Rs 300 per share for its Rs 881 crore-initial share sale.
As per market observers, Bikaji Foods shares are commanding a premium (GMP) of Rs 73 in the grey market today. The shares of the company are expected to list on leading stock exchanges BSE and NSE on November 16, 2022. The finalisation of the basis of share allotment is expected to take place on November 11, 2022.
Bikaji Foods IPO consists of 2.93 crore shares in the public issue, which will be a pure offer for sale (OFS) by its promoters and existing shareholders. Since the IPO is completely an OFS, the company will not receive any proceeds from the issue. Both the promoters, Shiv Ratan Agarwal and Deepak Agarwal, are looking to offload up to 25 lakh company shares each. At the upper end of the price band, the IPO is expected to fetch Rs 881 crore.
Going by the draft paper, Bikaneri bhujia was given the geographical identification (GI) tag in 2010, since it is a popular cottage industry of Bikaner, providing employment to a large group of people in the region. None other than the registered users are allowed to use the name of ‘Bikaneri bhujia’ as a generic product.
Bikaji is one of India’s largest fast-moving consumer goods brands with an international footprint, selling Indian snacks and sweets. Founder of Bikaji Foods International Shiv Ratan Agarwal is the grandson of Haldiram’s founder Gangabishan Agarwal. Shiv Ratan Agarwal founded the company in 1986. It was originally incorporated as Shivdeep Industries Ltd. In 1993, the company’s name was changed to Bikaji Foods.
Its product range includes six principal categories: bhujia, namkeen, packaged sweets, papad, western snacks and other snacks which primarily includes gift packs (assortment), frozen food, mathri range and cookies.