Bikaji Foods International will open its IPO on 3rd November which will remain open till 7th November
Sweets and farsan maker Bikaji Foods International (Bikaji Foods International) is going to enter the stock market this month. Amitabh Bachchan is the brand ambassador of Bikaji. The company is coming up with an initial public offer (IPO) for entry into the stock market and will open its IPO on November 3, which will remain open till November 7. Under this IPO, Bikaji Foods will offer 2.94 crore shares. A price band of Rs 285 to Rs 300 per share has been prepared for these shares. The company is looking to raise up to Rs 900 crore at the upper end of the price band through this offering.
Gray market premium for Bikaji Foods IPO
Shares of Bikaji Foods have started trading in the unlisted or gray market ahead of the IPO opening. According to market insiders, the shares of Bikaji Foods were trading at a premium of Rs 70 in the gray market on Tuesday.
What does this gray market premium represent?
Shares of Bikaji Foods are trading at a premium of Rs 70 in the gray market. This means that the gray market is currently expecting Bikaji Foods stock to be listed at Rs 370, which is Rs 70 more than its price band of Rs 300. If this happens, then investors can get a listing gain of about 40 per cent in the shares of Bikaji Foods.
Keep these things in mind before investing
Stock market insiders say that before investing in any IPO, investors should not only look at the gray market premium but also check other aspects for a sound and clear decision. The success and failure of any IPO cannot be judged by the gray market premium alone. In fact, only a company’s financial position and balance sheet entries reveal its true picture. This IPO is purely an offer for sale. That is, the company is not going to issue any new shares under this IPO. But all the shares are for sale through its promoters and existing shareholders. A total of 2.94 crore equity shares will be put up for sale under this IPO.
Minimum amount to be invested
For the IPO of Bikaji Foods, investors will have to bid for at least 50 shares. Thus a retail investor may have to invest a minimum of Rs 15000 (300×50 shares).
Know about the company
The Bikaji brand was launched in 1993. Gradually it spread all over India. As of June 2022, the company has established its presence in 23 states and union territories. Apart from this, the company exports its products to 21 countries. Which includes North America, Gulf countries, Africa and Asia Pacific countries. Its international business accounts for 3.20 per cent of the company’s impressive sales.