Bikaji Foods International was founded by Shiv Ratan Agarwal in 1995. Today, it is one of the leading ethnic Indian snack companies in the world. In Fiscal 2022, the company had a manufacturing capacity of 9,000 tonnes for handcrafted papad and 29,380 tonnes for Bikaneri bhujia, making it the second-largest manufacturer in both categories. It operates across 23 states and 3 union territories as of June 30th, 2022.
Moreover, it has an international footprint, exporting its products to 21 international countries, including North America, Europe, the Middle East, Africa, and Asia Pacific, representing 3.20% of India’s sales of food products.
It plans to open two more manufacturing facilities, one of which will be controlled by it and would produce frozen snacks and confectionery goods. For the other manufacturing facility, which will produce namkeen and western snacks, an arrangement has been made for contract production. On its payroll as of June 30, 2022, BFIL had 2,664 employees.
Bikaji Foods IPO
The company’s IPO is set to open on Nov 3, 2022, at 10:00 AM and close on Nov 7, 2022, at 5:00 PM. On November 11, 2022, the basis for allocation will be finalized, and on November 14, 2022, reimbursements will begin. Additionally, the stock is slated to debut on November 16, 2022, and the demat credits are anticipated to occur on November 15, 2022. The grey market pricing (GMP) trading typically begins 4-5 days before the launch of the IPO and lasts until the listing day.
GMP- The GMP (Grey Market Premium) is mainly dependent on two factors-
- The Market Conditions- This includes Nifty and Sensex levels as well as the general IPO market and macro conditions.
- IPO subscriptions across retail and the QIB segments- It indicates the investor interest in the stock. A strong QIB subscription triggers a rapid increase in GMP
GMP often serves as a reliable reflection of the true stock story. The GMP trend over time provides clues about which way the wind is blowing more so than the actual price. For Bikaji Foods International, a short GMP overview is provided.
As shown, the GMP trend reveals that the grey market premium started out around Rs 90 on October 28 but has since declined to about Rs 72. The GMP would be greatly impacted by the actual subscriber numbers that come in when the issue opens for subscription on November 3rd, so we must obviously wait for them to come in. In the past, stocks that experienced an IPO oversubscription also experienced a fairly significant improvement in pricing on the grey market. First off, Bikaji Foods International Ltd. has demonstrated strong growth in the black market.
Grey market price, or GMP, is a significant, albeit unofficial, predictor of likely listing price. This pricing cannot be taken at face value. The GMP, on the other hand, is frequently somewhat fluid and shifts course in response to current news and events. Investors should be aware that this is only a casual indication and has not received official approval.