Bikaji Foods submits DRHP to SEBI to bring Rs 1000 crore IPO

Bikaji Foods International, a company that makes sweets and snacks, is coming up with its IPO. Bikaji Foods is about to raise Rs 1,000 crore from the market through IPO. To bring the IPO (Intial Public Offering), the company has filed a Draft Red Herring Prospectus. 

Some shareholders, including two promoters of Rajasthan-based company Bikaji Foods, have offered to sell 2.94 crore shares in the IPO through Offer for Sale. The company plans to sell up to 2,93,73,984 shares. These shares will be sold by two promoters Ratan Agarwal and Deepak Agarwal. Both the promoters will sell 25 lakh shares each. The company has roped in JM Financial. IIFL Securities has been appointed as the banker for the IPO. According to the documents submitted to SEBI (DRHP), Bikaji is the largest producer of Bikaneri Bhujia on an annual basis with 26,690 tonnes in the financial year 2020-21. 

Private equity companies Lighthouse Funds, IIFL, Avendus and Axis have investments in Bikaji Foods International. Bikaji Foods has six manufacturing plants in Rajasthan, Assam, Karnataka. Bikaji Foods manufactures Bhujia, Namkeen, Papad, Sweets besides Frozen Foods items. 

It is believed that the company will execute the expansion plan with the money raised from the IPO as well as launch new products. At the end of the 2020 financial year, the company’s revenue stood at Rs 1073 crore. Namkeen accounted for 37 percent of the total sales of the company, 32 percent of Bhujia, 14 percent of sweets and 10 percent of papads. Ready to eat snacks market is growing rapidly in India. It is believed that between 2021 and 2025, it will grow at the rate of 8.9 percent annually.

Amitabh Bachchan, the emperor of Bollywood, is the brand ambassador of Bikaji Foods. After getting the approval of the IPO from SEBI, the company will decide on the price band and launch date of the IPO.