Bikaji Foods IPO: GMP signals 25% listing gains, issue to open on Nov 3

The initial public offer (IPO) of Bikaji Foods International, the third-largest ethnic snacks company in India will open on November 3. The price band for the IPO stands at Rs 285-300. The grey market premium (GMP) of Bikaji Foods International stands at Rs 75 today, according to IPO Watch. This implies that the stock is likely to be listed at Rs 375, a premium of 25 per cent over the IPO price. At the upper end of price band, the issue size comes in at Rs 881.22 crore.

The IPO will close on November 7. The shares will be allotted on November 11 and initiation of refunds will be carried out on November 14. The shares are likely to be listed on November 16 on BSE and NSE.  The IPO is open for anchor investors today.

The lot size for Bikaji Foods IPO is 50 shares. A retail-individual investor can apply for up to 13 lots (650 shares buy spending Rs 195,000). One will have to spend Rs 15,000 to apply for a single lot of IPO.

The offer is purely an offer for sale (OFS) of 29,373,984 shares. Selling shareholders include Shiv Ratan Agarwal (up to 2,500,000 shares), Deepak Agarwal (up to 2,500,000 shares) India 2020 Maharaja (up to 12,110,967 shares), Intensive Softshare (up to 50,000 shares), IIFL Special Opportunities Fund (up to 3,110,056 shares),  among others.

JM Financial Limited, Axis Capital Limited, IIFL Securities Ltd, Intensive Fiscal Services Private Limited and Kotak Mahindra Capital Company Limited are the lead managers of the IPO. Link Intime India is the registrar to the IPO.  The shareholders will be entitled to the entire proceeds of the offer after deducting the offer expenses and relevant taxes thereon. The company will not receive any proceeds from the IPO.

The firm is one of the largest organised namkeen snacks and sweets manufacturing and marketing companies. Bikaji Foods has four manufacturing facilities, with a total manufacturing capacity of 400 TPD, producing 300 products such as Bhujia, Namkeen, papad, Western snacks and cookies among others.

Also Read: Bikaji Foods IPO: Open date, price band, GMP & more