Bikaji Foods International has filed a draft red herring prospectus (DRHP) for an initial public offering (IPO) with the market regulator, Sebi. And the company is likely to raise around Rs. 1,000 crore. The issue is entirely an offer for sale (OFS) of up to 29,373,984 by existing shareholders and promoter group entities. The company will not receive any proceeds from the issue.
Among its shareholders are Avendus, IIFL Asset Management, Intensive Softshare, Axis Asset Management, and Lighthouse Funds. However, only the first three are offloading stakes along with a few other shareholders. The offer also includes a reservation for eligible employees.
Bikaji claims it is the largest producer of Bikaneri bhujia with an annual production of 26,690 tonnes, and the second-largest manufacturer of handmade papad with an annual production capacity of 9,000 tonnes in FY21.
It also produces packaged sweets, including rasgulla, gulab jamun, and soan papdi. It recently launched the Bikaji Cafe and Bikaji Funkeen brands to promote its western snack segment and also launched an online retail platform to increase sales.
The company has six operating manufacturing facilities and it intends to establish and operationalize five more, one in Rajasthan catering to frozen snacks and sweet products owned and operated by them, besides others across Rajasthan, Bihar, and Uttar Pradesh, where it will produce namkeen and western snacks.
The company reported that its revenue from operations increased by 22% to Rs. 1,310.75 crore in FY21, compared to Rs. 1,074.55 crores in FY20, owing to an increase in volume and realisation of products, particularly bhujia, namkeen, papad, western snacks, and packaged sweets, as well as the sale of food products (traded goods).Net profits increased by 60% from Rs 56.37 crore in FY20 to Rs. 90.34 crore in FY21.For the six months ending September 2021, revenue from operations stood at Rs. 771.73 crores and net profit was Rs. 40.93 crores.
The book-running lead managers for the issue are JM Financial, Axis Capital, IIFL Securities, Intensive Fiscal Services Private, and Kotak Mahindra Capital Company.