Bikaji Foods International hits all-time high as company acquires 49% stake in Bhujialalji

Bikaji Foods International share price: Shares of Bikaji Foods International, the packaged foods company, hit an all-time high of Rs 468.95 apiece on the BSE on Wednesday (July 19) after the company said it had acquired a 49 per cent stake in Bhujialalji Private (BPL).

The scrip of the company settled at Rs 449.10, up 5.34 per cent on the BSE.

In its regulatory filing, the company added, "We hereby inform you that the Company has acquired a stake of 49% in Equity Shares and 396 Compulsorily Convertible Debentures (CCDs) in Bhujialalji Private Limited on July 19, 2023. Subsequent to the acquisition, Bhujialalji Private Limited has become an associate of the Company. "

Objects and effects of acquisition

Object

For better expansion of business and to further strengthen the position of the company.

Effect

Pursuant to the mentioned acquisition, the BPL has become an Associate Company of Bikaji Foods International Limited ("the BFIL") with an aggregate of 49% shareholding in Equity Shares and 396 Compulsorily Convertible Debentures (CCDs) in the BPL. The business of the BPL is in line with the main line of business of the Company, Bikaji Foods said.

Bikaji Foods share price and IPO

Shares of the company were listed on November 16, 2022. The company's IPO ran between November 3, 2022, and November 7, 2022. The public offer was overall subscribed 26.67 times. The price band of the issue was Rs 285 to Rs 300 per share. The issue price was Rs 300.

As per the company's draft paper, Bikaji is the largest manufacturer of Bikaneri bhujia with an annual production of 29,380 tonnes and is a leading maker of packaged rasgulla, soan papdi, and gulab jamun.

Bikaneri bhujia was given the geographical identification (GI) tag in 2010, since it is a popular cottage industry in Bikaner, providing employment to a large group of people in the region. None other than the registered users are allowed to use the name Bikaneri Bhujia as a generic product.