Bikaji Foods Unlisted Shares

Bikaji FoodsFMCG company Bikaji Foods International is one of the largest manufacturers of ethnic snacks and sweets in the country.

Shiv Ratan Agarwal is the chairman of the snacks maker Bikaji Foods, started the business in 1993.

Bikaji Foods, whose most popular offering has been bhujia namkeen, is among the top three Indian ethnic snack manufacturers and largest manufacturer of Bikaneri bhujia in India.

Bikaji makes Indian snacks such as bhujia, papad, namkeensand sweets including rasgulla at its factory in Bikaner. The company operates in a fragmented and unorganised food industry, where it faces competition from local manufacturers as well as organised players.

It is also active in the packaged sweets segments, including rasgulla, gulab jamun, and soan papdi. It recently launched Bikaji Cafe and Bikaji Funkeen brands to promote western snack segment and launched an online retail platform.

Apart from its home turf of Rajasthan, the company has a strong presence is a few other states such as Bihar and Assam.

The packaged food maker counts Bollywood celebrity Amitabh Bachchan as its brand ambassador. Apart from ethnic savouries, the company says it has ventured into western snacks as well and have recently launched Bikaji Café and Bikaji Funkeen brands to promote the western snack segment.

Bikaji claims to be the largest producer of Bikaneri bhujia, an Indian munching snack, with an annual production of 26,690 tonnes. It is the second-largest manufacturer of handmade papads with an annual capacity of 9,000 tonnes in FY21.

Avendus, IIFL Asset Management, Intensive Softshare are among the key shareholders offloading their stake, including a few others.

The snack maker has been able to hold its crunch around Rs 450 apiece in the pre-IPO market.

Company Information

The company’s revenue from operations grew 22 per cent to Rs 1,310.75 crore for FY21 against Rs 1,074.55 crore for fiscal 2020, primarily due to increase in volume and realisation of products across all major segments.

Valuations
Considering the current unlisted market share price of around Rs 400 per equity share, Bikaji Foods shares command a valuation of approx. Rs. 10,000 crore.
Bikaji IPO Update

Bikaji Foods plans to raise Rs 1,000 crore at a valuation of around $1 billion.

The company said it will offer for sale 29,373,984 shares through which promoters Shiv Ratan Agarwal and Deepak Agarwal will be selling 25 lakh shares each.

Along with the promoters, investment firm IIFL Securities and private equity firm Lighthouse Advisors , who are investors in the company, will be selling shares.

The Board of Directors have vide their resolution passed in their meeting held on 15 November 2021 approved matters in relation to the Initial Public Offer (IPO) by way of Offer for Sale by existing shareholders of the Company.

Recent News Update

White Oak Capital Buys 2% Stake In IPO-Bound Bikaji Foods, Valuation At Over $900 Million

During the financial year 2021-22, the Company vide letter dated January 05, 2022 received approval under the Production Linked Intensive (“PLI”) Scheme introduced by Ministry of Food Processing Industries (MOFPI).

Outlook: 

Bikaji Foods’ listed competitors are DFM Foods, Prataap Snacks. Unlisted competitors are Haldirams.

The snacking industry has been on an uptrend and is expected to maintain momentum.

The demand for hygienic products, brand awareness, and ease of availability is making people move towards organized players.

Bikaji became a global name in such a short span of time. It has strong growth potential.

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