Bikaji Foods Listing Today: Bikaji Foods International, one of the leading FMCG players in the packaged food segment, is all set to debut on Dalal Street on Wednesday, November 16, 2022. As per the information available on BSE website, effective from Wednesday, November 16, 2022, the equity shares of Bikaji Foods International Limited shall be listed and admitted to dealings on the BSE and NSE in the list of ‘B’ group of securities. Bikaji Foods IPO listing will take place in Special Pre-open Session (SPOS) on Wednesday.
Considering the good response to the IPO, optimism in the secondary market, its market leadership in its core states (Rajasthan, Assam, and Bihar), an international footprint, a healthy top line, and a strong management team, the listing premium is expected to be around 10 per cent over the final issue price of Rs 300 per share, in line with the grey market premium, but the downside could be that the issue was a complete offer for sale (OFS) by promoters and investors, apart from falling margin, experts said.
Meanwhile, on Bikaji Foods IPO listing date, grey market is signaling positive listing of Bikaji Foods shares. According to market experts, Bikaji Foods IPO GMP (grey market premium) today is Rs 28, which means shares of Bikaji Foods are available at a premium of Rs 28 per share in grey market today.
The Rs 881-crore public issue was subscribed 26.67 times during November 3-7 backed by qualified institutional buyer (QIB) interest. QIBs had applied for more than 80 times the allotted quota, and high net-worth individuals over 7 times, while the portions set aside for retail investors and employees were subscribed 4.77 times and 4.38 times, respectively.
On Bikaji Foods share price debut, Ravi Singhal, CEO at GCL Securities said, “Much will depend upon the market mood. If the market opens higher, then in that case we can expect Bikaji Foods share price opening at around Rs 350 apiece whereas in bear case, we may witness par listing of the IPO." Ravi Singhal of GCL Securities said that in case of weak stock market opening today, Bikaji Foods share price may open around Rs 300 apiece levels.
Expecting positive opening of Bikaji Foods share price today, Manoj Dalmia, Founder & Director at Proficient Equities said, “Bikaji Foods International Limited is one of India’s largest fast-moving consumer goods (FMCG) brands. The company’s product range includes six principal categories: bhujia, namkeen, packaged sweets, papad, western snacks as well as other snacks. It has posted declined margins for FY22 on higher sales in line with the general trends of the industry. Sustainability of such margins going forward amidst stiff competition raise concerns. It has subscribed 26x in total where investors can expect some listing gains."
With a track record of three decades in the Indian snacks industry, Bikaji recorded a 22 per cent compound annual growth rate (CAGR) in sales during FY20-FY22. Over the same period, its EBITDA (earnings before interest, tax, depreciation and amortisation) and profit after tax grew at a CAGR of 21 per cent and 16 per cent, respectively.
However, in FY22, the company reported a 16 percent year—on-year decline in profit due to higher input cost and EBITDA margin dropped by 230 basis points (bps), but revenue grew 23 per cent in the same period. With a fall in input costs, the second half of FY23 performance is expected to be better than the first half, analysts said.
“The company has a strong management team and a significant percentage of promoter holdings. It generated strong revenue growth in the last three years, where revenue improved from Rs 1,082.9 crore in FY2020 to Rs 1,621.45 crore in FY2022,” said Pravesh Gour, senior research analyst at Swastika Investmart, an Indore-based stockbroking services firm.
“The current grey market premium is 10 per cent over its issue price. Nevertheless, the company’s margins are on the declining side and a P/E (price-to-earnings) valuation of 95.2 looks expensive. Therefore, we advise investors to lock in listing gains,” Gour added.
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