The scrip, compared to the difficulty value of Rs 300, acquired listed at a premium of 8% at Rs 322.80 on Nationwide Inventory Alternate (NSE) and at a premium of seven% at Rs 321.15 on BSE.
Nevertheless, following the itemizing, the inventory rose additional to Rs 335, taking your complete itemizing positive factors to about 12% however solely to see revenue reserving at increased ranges.
Analysts stay involved over the excessive valuations and diminishing margins of the corporate. A number of of them have recommended reserving income after the debut, whereas others imagine that Bikaji is poised to supply crispier returns in the long term.
Pravesh Gour, Senior Technical Analyst,
mentioned the corporate noticed a muted itemizing however the situation obtained a great response from buyers on each the institutional in addition to retail facet.
“We advise solely aggressive buyers to think about making a long-term dedication to the corporate. Those that utilized for itemizing positive factors can preserve a cease lack of Rs 310,” he mentioned.
Bikaji Meals is India’s third-largest ethnic snack firm. The corporate’s product vary consists of six principal classes: bhujia, namkeen, packaged sweets, papad, and western snacks amongst others.
Manoj Dalmia, Founder and Director, Proficient Equities mentioned Bikaji had an anticipated itemizing following a powerful subscription. “Quick-term buyers can e book income whereas long-term buyers can park their funds on this situation.”
Its margins are declining on account of upper gross sales, in step with the final traits of the business, and sustainability of such margins going ahead amidst stiff competitors stays a priority, he added.
The corporate’s Rs 881-crore IPO was offered within the vary of Rs 285-300 per share and obtained a powerful investor response. It was subscribed over 26.67 instances between November 3-7.
The quota reserved for certified institutional consumers (QIBs) was subscribed 80.6 instances whereas these reserved for non-institutional buyers (NIIs), retailers and workers have been subscribed 7.1 instances 4.77 instances and 4.38 instances, respectively.
Arafat Saiyed, Senior Analysis Analyst,
Securities stays constructive on the difficulty within the longer run and recommended that one can add the inventory at present ranges for the long run.
Ravi Singhal, CEO, GCL Securities mentioned Bikaji made its debut within the anticipated vary. “Because the valuations have been excessive and the difficulty was richly priced, revenue reserving on the increased vary can be a prudent strategy,” he mentioned.
(Disclaimer: Suggestions, solutions, views, and opinions given by the consultants are their very own. These don’t signify the views of Financial Instances)