Bikaji Foods International said it has filed its draft red herring prospectus (DRHP) for an initial public offering (IPO) with the market regulator Sebi. As per the market sources, the company is likely to raise Rs 1,000 crores, an official statement highlighted.
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, according to the draft red herring prospectus (DRHP). The company will not receive any proceeds from the issue.
The snack-maker is backed by marquee investors like Avendus, Axis Asset Management, Lighthouse Funds, IIFL Asset Management and Intensive Softshare.
Bikaji today stands to be the largest producer of Bikaneri bhujia with annual production of 26,690 tonnes, and the second largest manufacturer of handmade papad with an annual production capacity of 9,000 tonnes in Fiscal 2021 as mentioned in the F&S report quoted in its DRHP.
The company’s six operating manufacturing facilities, four of which are located in Bikaner (Rajasthan), Guwahati (Assam), and Tumakuru (Karnataka), a contract manufacturing unit in Kolkata (West Bengal) that serves nonexclusively parts of eastern and north eastern India and a small facility in Mumbai catering to restaurant sales.
Bikaji’s revenue from operations grew 21.98% to Rs. 1310.75 crore for the fiscal 2021 against Rs. 1074.55 crore for the fiscal 2020, primarily due to increase in volume and realisation of products, in particular, bhujia, namkeen, papad, western snacks and packaged sweets and sale of food products (traded goods), while its net profits grew 60.26% 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 crore and net profit was Rs 40.93 crore.