Bikaji Foods Debuts On Stock Exchanges, Listed At 7% Premium

Bikaji Foods made its stock market debut today on a positive note as the shares got listed at a premium of over 7 per cent over the issue price of Rs 300..After receiving an encouraging response to its Rs 881-crore initial public offer, the shares were listed at Rs 321.15 on BSE. It immediately rose to Rs 332 but witnessed volatility briefly in the late morning deals.."Given an optimistic outlook in the secondary market, Bikaji listed with a decent premium of 8-10 per cent on the issue price. But investors should also look at a few red flags on high-ask valuations and a complete OFS (offer for sale) issue as areas of concern," said Prashanth Tapse, Senior Vice President for Research at Mehta Equities..Since the IPO was an offer for sale by promoters and existing shareholders, the entire issue proceeds go to them..Analysts said conservative investors should look for booking profits or exit on listing day, while risk takers can hold for the medium to long term..Bikaji has strong market positioning and good brand recall with improved penetration to maintain long-term growth, Mr Tapse added..Investors should also look at a few red flags on high-ask valuations and a complete OFS (offer for sale) issue as areas of concern, he said, adding that Bikaji has strong market positioning, good brand recall with improved penetration to maintain the long-term growth..The initial public offering (IPO) of Bikaji Foods International was subscribed 26.67 times last week.

Bikaji Foods Debuts On Stock Exchanges, Listed At 7% Premium

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