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Bikaji Meals IPO totally subscribed on Day 2. Do you have to think about?

The preliminary public provide (IPO) of Bikaji Meals Worldwide bought totally subscribed on Day 2 of the bidding course of. The IPO acquired bids for two,15,79,650 shares towards the problem measurement of two,06,36,790 shares.

The difficulty is solely a proposal on the market (OFS) of 29,373,984 shares, which is being bought within the 285-300 value band. The lot measurement is 50 shares.

Learn extra: Bikaji Meals IPO expensively priced: Analyst views, GMP, value band, lot measurement & extra

In line with Geojit Monetary Providers, the IPO is demanding a valuation of 98.5 instances FY22 EPS, which seems costly in comparison with its friends.

“Contemplating Bikaji’s constant top-line development, industry-leading place, future growth plans, new product launches, investments in strengthening the model recall and good future prospects for the packaged meals enterprise, we assign a ‘Subscribe’ score on a short-term foundation for high-risk buyers,” the brokerage added.

Angel Broking has a ‘subscribe’ score on the problem. It famous that Bikaji noticed higher income and PAT development during the last two years and in addition has a powerful model recall.

Bikaji is the third largest ethnic snack firm in India. It has 4 manufacturing services, with a complete manufacturing capability of 400 TPD, producing 300 merchandise corresponding to Bhujia, Namkeen, papad, Western snacks and cookies amongst others. Bhujia accounts for practically 35 per cent of its gross sales.

Total, Bikaji operated in 23 states and 4 union territories as of June 30 and has market management within the ethnic snacks market in Rajasthan, Assam, and Bihar. It additionally exports its merchandise to 21 worldwide international locations, which account for 3.2 per cent of its whole gross sales.

“Bikaji IPO is expensively valued and leaves little room for upside amid a unstable market. In the meantime, since rural India is below stress, there are headwinds within the microfinance {industry} and therefore buyers ought to stay cautious over the Fusion Micro Finance concern,” mentioned Arijit Malakar, Head of Analysis for Retail, Ashika Group.

“BFIL, with its sturdy market place throughout its diversified product portfolio, sturdy distribution, strategic manufacturing services, sturdy model visibility and constant monetary efficiency is in a very good place with wholesome visibility going forward,” mentioned LKP Securities in a word.

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