India's Bikaji Foods rises nearly 12% in market debut

Bikaji Foods International

16/11/2022 05:40

** Shares of snacks and sweets maker Bikaji Foods
International  BIKA.NS  rise as much as 11.6% in trading debut
to 334.7 rupees in a tepid broader market  .NSEI 
    ** Stock listed at 322.8 rupees, a 7.6% premium to its IPO
price of 300 rupees
    ** BIKA's $108 mln IPO was subscribed nearly 27X, exchange
data showed, with strong response seen from institutional
investors (80.6X shares on offer)
    ** Co's promoters sold 29.4 mln shares in IPO
    ** Though FY22 earnings were depressed due to high commodity
prices, even on normalised earnings, the valuation multiple is
premium to peers - ICICI Direct Research said in a pre-IPO note
    ** ICICI Direct Research also flagged that raw material
volatility could continue to pressurise margins, adding that 
sales concentrated in a small number of states, high competitive
intensity, and high dependence on the wholesale network were key
concerns
    ** More than 18 mln shares change hands by 0519 GMT on
Wednesday
    ** Rivals Prataap Snacks  PRAT.NS  and DFM Foods  DFMF.NS 
up 13.1% and 27.7% this year, respectively, vs a 6.1% rise in
the blue-chip Nifty 50  .NSEI  index
    ($1 = 81.4830 Indian rupees)
 (Reporting by Navamya Ganesh Acharya in Bengaluru)
 ((Navamya.GaneshAcharya@thomsonreuters.com; +91 8805175330 ;))