Bikaji Foods IPO: Retail portion over-subscribed at 1.54 times on Day 2; overall subscription 96%

Bikaji Foods International IPO issue was oversubscribed by retail investors on Day 2. The Retail Individual Investors (RIIs) subscribed the issue 1.54 times. The overall subscription stood at 0.96 times or 96 per cent, Zee Business report said.  

The qualified institutional investors subscribed the issue 0.02 times while the non-institutional (NIIs) investors subscribed it 0.83 times.

Zee Business Managing Editor Anil Singhvi has advised investors to subscribe Bikaji Foods International for the long term. He said that the brand has a strong standing with an impressive track record. He said that the company has an experienced promoter and is virtually debt-free. The shift from local to packaged snacks is a changing trend that will give a boost to the growth of the company.

Bikaji Foods has a strong presence in north and eastern parts of country. It sells a wide range of snacks and namkeens.

Bikaji Foods will not receive any funds from the IPO as it is a complete offer for sale by promoters and shareholders. The IPO comprises of OFS of around 2.94 crore equity shares by its promoters and existing shareholders. Both the promoters -- Shiv Ratan Agarwal and Deepak Agarwal-- are looking to offload up to 25 lakh company shares each.

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According to Singhvi, the valuations are expensive and could have been made attractive. He said that considering the size of the company, the valuation should have been less expensive.

He said that as the valuation is expensive and that the profit on the listing will be less but investors should add Bikaji to their portfolio for the long term. Anil Singhvi said that he is positive about the entire food industry.

The retail investors can subscribe this issue for a maximum amount of Rs 200,000. The minimum subscription limit is 1 lot or 50 shares. The issue opened on Thursday and will close on Monday, 7 November, 2022.  The issue type is 100 per cent book building with the price bank at Rs 285 to Rs 300.