Bikaji Foods IPO: Latest GMP ahead of share allotment this week

The initial public offering (IPO) of Bikaji Foods International closed on Monday, November 7, 2022 and now all eyes are on the finalization of basis of share allotment of Bikaji Foods IPO is expected to take place this week on Friday, November 11, 2022.

The public issue was 26.67 times by the last day of subscription. The ₹881-crore IPO received bids for 55,04,00,900 shares against 2,06,36,790 shares on offer, as per data available with the NSE. The Qualified Institutional Buyers (QIBs) category received 80.63 times subscription, while the non-institutional investors category was subscribed 7.10 times and Retail Individual Investors (RIIs) was subscribed 4.77 times.

As per market observers, Bikaji Foods shares are commanding a premium (GMP) of ₹35 in the grey market today. The shares of the company are expected to list on leading stock exchanges BSE and NSE on Wednesday, November 16, 2022.

Bikaji Foods (BFL) is the third largest ethnic snacks company in India along with a presence in international markets. BFL is the second fastest growing company in the Indian organised snacks market. It is the largest manufacturer of Bikaneri bhujia with annual production of 29,380 tonnes and second largest manufacturer of handmade papad with annual production capacity of 9,000 tonnes in FY22. BFL is also third largest player in the organised sweets market with annual capacity of 24,000 tonnes for packaged rasgulla, 23,040 tonnes for Soan Papdi and 12,000 tonnes for Gulab Jamun.

The initial share sale was a pure Offer For Sale (OFS) of up to 2,93,73,984 equity shares. The price range for the offer is at ₹285-300 a share. On Thursday, Bikaji Foods International Ltd said it has mobilised ₹262 crore from anchor investors. Since the IPO was completely an OFS, the company will not receive any proceeds from the issue.