Bikaji Foods International made a decent market debut on Wednesday, as the scrip got listed at Rs 322.80 on NSE, a 7.60 per cent premium over its issue price of Rs 300.
On BSE, the scrip debuted at Rs 321.15, up 7.05 per cent.
Ravi Singhal, CEO at GCL Securities was expecting Bikaji Foods listing at Rs 350 in a bull case scenario and near Rs 300 in a bear case scenario. He felt that valuations were high and one could book profit on listing in the higher range.
Bikaji’s was purely an offer for sale (OFS) of 29,373,984 shares. Selling shareholders included Shiv Ratan Agarwal (up to 2,500,000 shares), Deepak Agarwal (up to 2,500,000 shares) India 2020 Maharaja (up to 12,110,967 shares), Intensive Softshare (up to 50,000 shares), IIFL Special Opportunities Fund (up to 3,110,056 shares), among others.
Bikaji Foods was commanding a premium of Rs 23 in the grey market, as the issue had received a good response from both QIBs (80.63 times) and NIIs (7.10 times). The IPO received a total 26.67 times subscription. But analysts noted that the company’s margins were declining and a PE valuation at 95.2 times looked expensive.
“Therefore, we advise investors to lock in listing gains, and only aggressive investors should consider making a long-term commitment to the company,” Pravesh Gour of Swastika Investmart said ahead of the IPO listing.
Bikaji as a brand was launched by Shiv Ratan Agarwal in 1993. The brand has a market leadership in the ethnic snacks market in Rajasthan, Assam, and Bihar. Bikaji operated in 23 states and four union territories as of June 30. It also exports its products to 21 international countries, which account for 3.2 per cent of its total sales.
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