FMCG company Bikaji Foods International, one of the largest manufacturers of ethnic snacks and sweets in the country, filed its draft red herring prospectus with capital markets regulator SEBI on Wednesday. The company said it will offer for sale 29,373,984 shares through which promoters Shiv Ratan Agarwal and Deepak Agarwal will be selling 25 lakh shares each. Along with the promoters, investment firm IIFL Securities and private equity firm Lighthouse Advisors , who are investors in the company, will be selling shares.
Bikaji Foods plans to raise Rs 1,000 crore at a valuation of around $1 billion, according to an Economic Times report. The IPO is entirely an OFS (offer for sale) hence the selling shareholders, i.e. the promoters and investors, will be entitled to the entire proceeds of the offer and not the company, according to the filing.
Shiv Ratan Agarwal, who is the chairman of the snacks maker Bikaji Foods, started the business in 1993 when he exited the family business started by his grandfather, the iconic bhujia-maker, Haldiram Agarwal. Haldirams holds the largest market share in savoury snacks in the country. Agrawal currently holds about 35% stake in the company while promoter Deepak Agarwal, who is also the whole-time director of the company holds 16% stake in the company.
Investment firm Lighthouse Advisors holds about 7% stake in the company, and IIFL holds 6.5% stake. According to the draft papers, Lighthouse Advisors (or India 2020 Maharaja Ltd) will offer about 1.21 crore equity shares for sale while IIFL Special Opportunities Fund will offload 1.1 crore shares.
Bikaji Foods, whose most popular offering has been bhujia namkeen, is among the top three Indian ethnic snack manufacturers and largest manufacturer of Bikaneri bhujia in India. The packaged food maker counts Bollywood celebrity Amitabh Bachchan as its brand ambassador. Apart from ethnic savouries, the company says it has ventured into western snacks as well and have recently launched Bikaji Café and Bikaji Funkeen brands to promote the western snack segment.
JM Financial, IIFL Securities, Axis Capital and Kotak Mahindra Capital Company Limited are the lead book running managers for the IPO.
Eqwires Research Analyst
Top-notch SEBI registered research analyst
Best SEBI registered Intraday tips provider and Best SEBI registered stock advisory company
Call: +91 9624421555 / +91 9624461555