Bikaji IPO: Bikaji Meals seeking to increase ₹1,000 cr through IPO at $1 billion valuation

Bikaji Meals Worldwide, India’s largest producer of ethnic savouries and sweets, is more likely to file its draft purple herring prospectus (DHRP) this week to lift ₹1,000 crore in an preliminary public provide at a valuation of round $1 billion, an individual conscious of the corporate’s plans advised ET.

The Rajasthan-based, ready-to-eat (RTE) merchandise maker has appointed JM Monetary, IIFL Securities and Intensive as its bankers to the difficulty.

The proposal may largely contain a proposal on the market (OFS) by the prevailing shareholders.

An electronic mail despatched to Bikaji Meals Worldwide didn’t elicit any response. Particular person service provider bankers couldn’t be reached in the meanwhile.

Non-public fairness corporations resembling Lighthouse Funds, IIFL, Avendus and Axis have invested in Bikaji. In 2012, Lighthouse acquired 12% within the firm and partially trimmed its stake to permit IIFL to spend money on Bikaji.

Avendus and Axis took a 1% stake every in 2019, in response to the corporate’s annual report of FY20. This PE funding helped the corporate to turn into debt-free.

Bikaji has six manufacturing amenities situated in Rajasthan, Assam and Karnataka to make greater than 400 tonnes per day of snacks. It makes round 300 merchandise masking a variety of bhujia, namkeen, sweets, papad and frozen meals. The gross sales quantity of Bikaji grew 13.85% yearly to 74.7 million kilograms between FY16 and FY20, whereas income grew 14.2% to ₹1,073 crore in the identical interval.

Namkeen accounts for 37% of gross sales, adopted by 32% for Bhujia, 14% for sweets, 10% papad and the stability by others. The Indian RTE snacks market is anticipated to develop at a compounded annual development charge of 8.9% between 2021 and 2025, in response to Statista.

The expansion of RTE snacks is pushed by simple availability, longer shelf life, rising urbanisation and rising disposable incomes.

The corporate plans to open extra amenities at strategic places within the subsequent few years and launch new manufacturers throughout completely different classes, in response to data on its web site.

Promoters Shiv Ratan Agarwal and Deepak Agarwal held 78.8% on the finish of FY20.

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