Bikaji Foods surges over 6% on acquisition of 49% stake in Bhujialalji

19 Jul 2023 , 11:55 AM

According to a filing with the exchanges, Bikaji Foods International Ltd. has bought a 49% ownership and 396 Compulsorily Convertible Debentures (CCDs) in Bhujialalji Pvt. Ltd., an upcoming company in the ethnic snacks industry.

Owing to this development, the company’s counter surged to a new 52-week high of Rs 468.90 in today’s trade. 

At around 11.45 AM, Bikaji Foods was trading 6.33% higher at Rs 453.30, against the previous close of Rs 426.30 on NSE. 

Bikaji Foods said that the transaction consists of 9,608 equity shares and 396 CCDs of Rs 5,100 each, aggregating to Rs 5.10 crore. The face value per equity share is Rs 10.

Bhujialalji Pvt. Ltd. (BPL) is a new entrant in this business, with a product portfolio that includes popular Bhujia and namkeen varieties.

‘With the company strategically situated in Bikaner, we will be able to harness the learnings of this new brand to enable quicker expansion and broaden our horizons in terms of a new audience set. Our goal is to reach every home in India, and this is a little step toward that goal,’ says Deepak Agarwal, Managing Director of Bikaji Foods International Limited.

The deal takes place at a time when India’s organized snacking market is estimated at $4,240 billion. It has increased dramatically in the previous five years due to changing lifestyles, rising affluence, and urbanization. 

In FY2015, the packaged food retail revenue stood at $2,434 billion, having a CAGR of roughly 8.3% from Fiscal 2015 to Fiscal 2022. According to Frost & Sullivan, it is expected to increase at an 8% CAGR over the next five years, reaching $5,798 billion.

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