Bikaji Foods International, which is one of India’s largest fast-moving consumer goods (FMCG) companies, has filed its draft red herring prospectus (DRHP) for an initial public offer (IPO).
The public issue will be an offer for sale with promoters and investors partially offloading their shares. The Rajasthan-based snack major is backed by investors like Avendus, Axis Asset Management, Lighthouse Funds, IIFL Asset Management and Intensive Softshare, among others.
The IPO size is expected to be around Rs 1,000 crore.
The company, which boasts around 250 varieties of products, was launched in 1993 and has operations in 22 states and three union territories in India. Further, it exports products to 35 countries, including those in North America, Europe, the Middle East, Africa, and Asia Pacific region.
According to disclosures made in the DRHP, the company is among the top three Indian ethnic snack manufacturers in the country and was the largest manufacturer of Bikaneri bhujia with an annual production of 26,690 tonnes in 2020-21.
The company is also one of the largest manufacturers of packaged rasgulla with an annual capacity of 24,000 tonnes along with that of soan papdi and gulab jamun with annual capacity of 23,040 tonnes and 12,000 tonnes, respectively.
In terms of profitability, the company clocked a net profit of Rs 40.93 crore in the six months ended September 30, 2021. For the financial year 2020-21, the net profit of the company was pegged at Rs 90.34 crore, higher than the previous fiscal’s Rs 56.37 crore.
The company’s revenue from operations grew 21.98 per cent to Rs 1,310.75 crore in FY21 from Rs 1,074.55 crore in the previous fiscal, 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).
The company has six operating manufacturing facilities, four of which are located in Bikaner, Rajasthan and one each in Assam and Karnataka. It also has a contract manufacturing unit in West Bengal and a small facility in Mumbai catering to restaurant sales.
Going ahead, Bikaji intends to establish and operationalise five more manufacturing facilities, one in Rajasthan catering to frozen snacks and sweet products owned and operated by the company besides others across Rajasthan, Bihar and Uttar Pradesh, where it will produce namkeen and western snacks.
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