FMCG player Bikaji Foods files for IPO, looks to raise Rs 1,000 Cr
Bikaji Foods International, a leading manufacturer of snacks and sweets, has filed preliminary papers with markets regulator the Securities and Exchange Board of India (SEBI) for an initial public offer (IPO) estimated to be worth Rs 1,000 crore.
During the IPO, certain shareholders of the Rajasthan-based company, including two promoters, plan to offload around 2.94 crore shares through the Offer For Sale (OFS) route.
According to the Draft Red Herring Prospectus (DRHP), Bikaji was the largest manufacturer of Bikaneri bhujia, with an annual production of 26,690 tonnes in fiscal 2021, and is a leading maker of packaged Indian sweets, including rasgullas, soan papdi, and gulab jamun.
The company plans to sell up to 2,93,73,984 shares, and the selling shareholders include two promoters, Ratan Agarwal and Deepak Agarwal, looking to offload up to 25 lakh company shares each.
According to market sources, the company expects to raise around Rs 1,000 crore from the IPO.
Other entities selling their shares inare India 2020 Maharaja, Intensive Softshare, IIFL Special Opportunities Fund, IIFL Special Opportunities Fund - Series 2, IIFL Special Opportunities Fund - Series 3, IIFL Special Opportunities Fund - Series 4, IIFL Special Opportunities Fund - Series 5, and Avendus Future Leaders Fund I.
The company expects the listing will enhance its visibility and brand image, as well as provide a public market for equity shares in India.
JM Financial, Axis Capital, IIFL Securities Ltd, Intensive Fiscal Services Pvt Ltd, and Kotak Mahindra Capital Company are the book running lead managers to the issue.
As per the DRHP, the company has more than 250 products, ranging from wholesome bites to indulgent treats, such as namkeen, sweets, papad, western snacks, chips, and cookies.
"The Bikaneri bhujia was given the Geographical Identification (GI) tag in 2010 since it is a popular cottage industry of Bikaner, employing a large group of people in the region. None other than the registered users are allowed to use the name 'Bikaneri bhujia' as a generic product," it said.