The script, against an issue price of Rs 300, is listed with a premium of 8% at Rs 322.80 on the National Stock Exchange (NSE) and with a premium of 7% at 321 ,15 Rs on BSE.
However, after listing, the stock rallied further to Rs 335, taking the entire listing gain to around 12% but only to see profits book at a higher level.
Analysts remain concerned about the company’s high valuation and diminishing profit margins. Some of them have suggested booking profits after launch, while others believe that Bikaji is ready to deliver higher returns in the long run.
Pravesh Gour, Senior Technical Analyst,
said the company has seen a muted listing but the issue has received a good response from investors on both the institutional as well as retail side.
“We only advise active investors to consider making a long-term commitment to the company. Those who apply for a listing profit application can maintain a stop loss of Rs 310,” he said.
Food Bikaji is India’s third largest ethnic snack company. The company’s product range includes six main categories: bhujia, namkeen, packaged candy, papad and western snacks among others.
Manoj Dalmia, Founder and Director, Proficient Equities said Bikaji had a strong post-signup tentative list. “Short-term investors can take profits while long-term investors can deposit money into this issue.”
Its margins are falling due to higher sales, he added, which is in line with overall industry trends and the sustainability of such margins in the future amid stiff competition still. is a concern.
The company’s Rs 881 IPO was sold for Rs 285-300 per share and received a strong response from investors. It was registered more than 26.67 times between November 3 and 7.
The quota for qualified institutional buyers (QIBs) was registered 80.6 times while the quotas for non-institutional investors (NII), retailers and employees were registered respectively. is 7.1 times 4.77 times and 4.38 times.
Arafat Saiyed, Senior Research Analyst,
Stocks remain bullish on the matter in the long term and suggest that one could replenish stocks at current levels in the long term.
Ravi Singhal, CEO of GCL Securities said that Bikaji has launched for the first time in the expected range. “Given the high valuations and the overvalued issue, placing profits in the higher range would be a conservative approach,” he said.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by experts are their own. These do not represent the views of The Economic Times. )