Bakery Biz, January-February, 2022

Bikaji Foods International, the country’s largest fast-moving consumer goods (FMCG), brands with an international footprint as per the Frost and Sullivan report, has filed its draft red herring prospectus (DRHP), for an initial public offering (IPO). As per market sources, it is understood that they are likely to raise around Rs 1,000 crore.

The snack maker is backed by marquee investors like Avendus, Axis Asset Management, Lighthouse Funds, IIFL Asset Management and Intensive Softshare.

The issue with a face value of Re 1 per equity share is an entirely an offer for sale (OFS), up to 29,373,984 by existing shareholders and promoter group entities, according to the draft red herring prospectus (DRHP).

The company has gradually expanded its footprint across India, with operations in 22 States and three Union Territories as of September 30, 2021, and also exporting its products to 35 international countries, including North America, Europe, the Middle East, Africa, and Asia Pacific, accounting for 4.60 percent of its food product sales.

The company stands to be the largest producer of Bikaneri bhujia with an annual production of 26,690 tonnes, and the second-largest manufacturer of handmade papad with an annual production capacity of 9,000 tonnes in Fiscal 2021 as mentioned in the F&S report quoted in its DRHP.

It is also one of India’s major producers of packaged sweets, including rasgulla, gulab jamun, and soan papdi and is known to be a pioneer in developing and reinventing classic Indian snacks with a contemporary taste to meet changing customer demands in India and abroad.