Bikaji Foods International Ltd IPO subscribed 26.67 times at close

Bikaji Foods International IPO worth Rs.881.22 crore, consisted entirely of an offer for sale for the full amount. There was no fresh issue portion in the IPO, so no fresh funds came in and it was not EPS dilutive. The IPO saw fairly steady response on Day-1 and Day-2 of the IPO and closed with rather healthy subscription numbers at the close of Day-3. In fact, the company got fully subscribed on the first day of the IPO itself. As per the combined bid details put out by the BSE at the close of Day-3, Bikaji Foods International Ltd IPO was subscribed at 26.67X overall, with best demand coming from the QIB segment, followed by the HNI / NII segment and the retail segment in that order. In fact, only the institutional segment saw some good traction on the last day. The HNI portion did do well but there was no surge of funding applications coming on the last day of the IPO.

As of close of 07th November 2022, out of the 206.37 lakh shares on offer in the IPO, Bikaji Foods International Ltd saw bids for 5,504.01 lakh shares. This implies an overall subscription of 26.67X. The granular break-up of subscriptions was in favour of the QIB investors followed by the HNI / NII investors while the retail portion got the lowest subscription among the various categories. QIB bids and NII bids typically gather most of the momentum on the last day, and that was the case in this issue also in the case of QIB bids. However, the NII bids hardly picked momentum even on the last day and just about added to its heft of the previous days.

Bikaji Foods International Ltd IPO Subscription Day-3

QIB Portion

Let us first talk about the pre-IPO anchor placement. On 02nd November 2022, Bikaji Foods International Ltd did an anchor placement of 87,37,194 shares at the upper end of the price band of Rs.300 to 36 anchor investors raising Rs.262.12 crore. The list of QIB investors included a number of marquee global names like Government of Singapore, Nippon Life, Nomura Funds Ireland, Blackrock Global, Goldman Sachs, Neuberger Berman, Carmignac Portfolio etc; apart from a host of Indian mutual fund and insurance companies.

The QIB portion (net of anchor allocation as explained above) has a quota of 58.25 lakh shares of which it has got bids for 4,696.64 lakh shares at the close of Day-3, implying a subscription ratio of 80.63X for QIBs at the close of Day-3. QIB bids typically get bunched on the last day and while the heavy demand for the anchor placement had given an indication of the institutional appetite for the Bikaji Foods International Ltd IPO subscription overall, the actual demand did turn to be quite robust for the IPO.

HNI / NII Portion

The HNI portion got subscribed 7.10X (getting applications for 310.03 lakh shares against the quota of 43.69 lakh shares). That is a rather steady response at the close of Day-3 largely because this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, come in on the last day of the IPO, and that was not exactly visible as the overall HNI / NII portion just about added to its heft on the last day. However, the HNI portion did eventually manage to sail through.

Now the NII/HNI portion is reported in two parts viz. bids below Rs10 lakhs (S-HNI) and bids above Rs10 lakhs (B-HNI). The bids above the Rs10 lakh category (B-HNIs) typically represents most of the major funding customers. If you break up the HNI portion, the above Rs10 lakh bid category got subscribed 7.47X while the below Rs10 lakh bid category (S-HNIs) got subscribed 6.34X. This is just for information and is already part of the overall HNI bids explained in the previous para.

Retail Individuals

The retail portion was subscribed 4.77X at the close of Day-3, showing steady retail appetite. It must be noted that retail allocation is 35% in this IPO. For retail investors; out of the 101.93 lakh shares on offer, valid bids were received for only 486.40 lakh shares, which included bids for 419.29 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.285-Rs.300) and has closed for subscription as of the close of Monday, 07th November 2022.