Bikaji Foods International said it has filed a draft red herring prospectus (DRHP) for an initial public offering (IPO) with the market regulator Sebi. As per market sources, 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 shares 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. JM Financial, Axis Capital, IIFL Securities, Intensive Fiscal Services Private, and Kotak Mahindra Capital Company are the book running lead managers to the issue.
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 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 said its revenue from operations grew 22 percent to Rs 1,310.75 crore for the FY21 against Rs 1,074.55 crore for fiscal 2020, primarily due to an increase in volume and realization of products, in particular, bhujia, namkeen, papad, western snacks, and packaged sweets and sale of food products (traded goods). Its net profits grew 60 percent 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.