Lighthouse-funded Bikaji Foods International on Wednesday filed a draft red herring prospectus (DRHP) to raise Rs 1,000 crore through an initial public offering (IPO).
The expected IPO would be valued at $1 billion (Rs 7,500 crore), said a person close to the company.
The offer also includes a reservation for subscription by eligible employees. The entire process comprises an offer-for-sale (OFS) of up to 29.37 million shares by the promoters and the existing shareholders.
Promoters Shiv Ratan Agarwal and Deepak Agarwal will sell up to 2.5 million shares, India 2020 Maharaja Ltd is expected to sell 12.11 million shares, IIFL through five of its funds is expected to sell up to 10.99 million shares and Avendus Future Leaders Fund-I will sell up to 1.22 million shares as part of the offering.
Bikaji is one of India’s leading FMCG brands that sells snacks and sweets, according to Frast and Sullivan report. It is the largest manufacturer of Bikaneri bhujia, soan papdi, packaged rasgulla and gulab jamun.
Shiv Ratan Agarwal launched the Bikaji brand in 1993. It has operations in 22 states and three union territories as of September 30, 2021 and are also exporting its products to 35 countries accounting for 4.6% of its food product sales.
The company has six operating manufacturing facilities that are located in Bikaner (Rajasthan), Guwahati (Assam), and Tumakuru (Karnataka), a contract manufacturing unit in Kolkata (West Bengal) and a small facility in Mumbai.
The company intends to establish and operationalise five more manufacturing facilities.
Bikaji’s operating revenues grew 22% to Rs 1311 crore in FY21 from Rs 1,075 crore in FY20 and the net profits have grown by over 60% from Rs 56.4 crore in Fy20 to Rs 90.3 crore in FY21.
The company has reported net profits of Rs 40.9 crore against operating revenues of Rs 771.7 crore during the six months ended September 2021.
JM Financial Limited, Axis Capital Limited, IIFL Securities Limited, Intensive Fiscal Services Private Limited and Kotak Mahindra Capital Company Ltd are the book running lead managers to the issue
Khaitan & Co. is the legal counsel to the company, J. Sagar Associates and Hogan Lovells Lee & Lee are the legal counsels to the BRLMs, and Jerome Merchant + Partners will be the legal advisor to the selling shareholders.
