Bikaji Foods International IPO lists at premium of 7.6%

Bikaji Foods International IPO had a healthy listing on 16th November 2022, listing at a premium of 7.6%, and closing the day well above the IPO price, although it did close the day below the listing price in the morning. While the stock did show some bouts of volatility during the day, it closed more than 5% above the issue price on the first day of trading on the NSE. However, the stock did close below the listing price on the first day of trading on the NSE. With subscription of 26.67X overall and QIB subscription at 80.63X, the listing was expected to be healthy, at the very least. Here is the Bikaji Foods International Ltd listing story on 16th November 2022.

The IPO price was fixed at the upper end of the band at Rs.300 which is rather normal considering the rather attractive 26.67X overall subscription and 80.63X subscription for the QIB portion. The price band for the IPO was Rs.285 to Rs.300. On 16th November 2022, the stock of Bikaji Foods International Ltd listed on the NSE at a price of Rs.322.80, a premium of 7.60% over the issue price of Rs.300. On the BSE also, the stock listed at Rs.321.15 a premium of 7.05% over the issue price.

On the NSE, Bikaji Foods International Ltd closed on 16th November 2022 at a price of Rs.317.50. That is a first day closing premium of 5.83% on the issue price of Rs300. However, the stock closed at a discount of -1.64% on the listing price of Rs322.80. On the BSE, the stock closed at Rs.317.45. That represents a first day closing premium of 5.82% over the issue price but a marginal discount of -1.15% below the listing price on the stock exchange. On both the exchanges, the stock listed above the IPO issue price but closed Day-1 marginally below the listing price. Clearly, the reason for the flat performance post listing seems to be that FMCG stocks were overall under some pressure in the market on Wednesday and that kind of rubbed off on the stock of Bikaji Foods International.

On Day-1 of listing, Bikaji Foods International Ltd touched a high of Rs.334.70 on the NSE and a low of Rs.314.20. The premium over the issue price sustained through the day. In fact, if you look at the range of prices, the stock went below the issue price through the day. However, the pressure on the stock is visible from the fact that the close was nearer to the low point of the day. On Day-1 of listing, the Bikaji Foods International Ltd stock traded a total of 274.37 lakh shares on NSE amounting to value of Rs.892.37 crore on the first day. The order book during the day showed a lot of selling pressure at higher levels with the sell orders exceeding the buy orders especially in the second half of the trading day.

On the BSE on Day-1 of listing, Bikaji Foods International Ltd touched a high of Rs.335 and a low price of Rs.314. The premium to issue price sustained through the day. In fact, like on the NSE, even on the BSE, if you look at the range of prices, the stock never dipped below the issue price through the day but the stock closed very near to the low price of the day. On Day-1 of listing, the Bikaji Foods International Ltd stock traded a total of 20.96 lakh shares on the BSE amounting to value of Rs.68.43 crore on the first day. While the volumes on the BSE were not as much as on the NSE, the trend was once again the same. The order book through the day showed selling pressure in the second half of the trading day with the sell orders exceeding the buy orders consistently in the last couple of hours. That made it a sell on rises stock, especially in the second half of the trading day.

At the close of Day-1 of listing, Bikaji Foods International Ltd had a market capitalization of Rs.7,920.69 crore with free-float market cap of Rs.633.66 crore.