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16th November marked the listing date for Bikaji Foods, the classic Indian snacks brand as its shares gave fair returns.
Bikaji Foods is one of India's favorite FMCG brands which offers a wide range of Indian snacks as it offers sweets, salted snacks, and a wide assortment of gift packs.
The company is among India's largest manufacturers of Bikaneri bhujia and papad with production going well over a few thousand tonnes annually. Moreover, the company also has a strong international presence with exports to 21 international countries, including North America, Europe, the Middle East, Africa, and Asia Pacific.
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The IPO opened for subscription early in November to allow its investors to offload their holdings. QIBs showed overwhelming interest in the issue as their portion, which was 50% of the net issue, was subscribed 80.63x times!! However, NII, Employees, and RIIs did not reciprocate as their portions were subscribed 7.1x, 4.38x, and 4.77x times respectively.
Prior to the IPO, the company managed to raise Rs 262 crores from major anchor investors which included Eastspring Investments, BNP Paribas, Morgan Stanley, Government of Singapore, Nomura, BlackRock, Goldman Sachs, Tata Mutual Fund, Aditya Birla Sun Life MF, ICICI Prudential MF, WhiteOak Capital, Kotak MF, HDFC MF, and Edelweiss MF.
The shares of the Rs 881 crores issue were offered to investors at a price of Rs 300 per share. By early morning today, the share was showing signs of fair gains. Even though the share was not showing signs of a bumper debut like DCX Systems, Syrma SGS, or Harsha Engineers, its GMP signaled 8-12% listing gains.
The stock is listed at a price of Rs 322.80, resulting in premiums in line with earlier estimates. The stock progressed well in the earlier hours as it touched a high of Rs 334.70 per share! However, a selling pressure overtook the stock after 2:00 as it ultimately closed at Rs 317.45 per share, up 5.8% from the issue price.
The initial investment of Rs 15,000 (50 shares x Rs 300 per share) improved to Rs 15,873 (50 shares x Rs 317.45 per share) after a profitable listing today.
Analysts believe the overwhelming interest from QIBs makes the share an attractive investment and investors can maintain long-term positions in the stock.
Article by Aman Agarwal
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