Bikaji Foods International Acquires 49% Stake in Bhujialalji, Shares Reach All-Time High

By siliconindia  |  Thursday, 20 July 2023, 09:42 IST

Bikaji Foods International Acquires 49% Stake in Bhujialalji, Shares Reach All-Time High
Bikaji Foods International Ltd. has made a significant move in the packaged-snacks industry by acquiring a 49% stake in Bhujialalji Pvt, resulting in a 7% surge in its share price. The acquisition involved purchasing 9,608 equity shares and 396 compulsorily convertible debentures of Bhujialalji at Rs 5,100 per security, totaling Rs 5.1 crore.
Deepak Agarwal, the managing director of Bikaji Foods, expressed the strategic advantage of this acquisition, stating, “With the company strategically headquartered in Bikaner (Rajasthan), this acquisition will help us leverage their learnings to enable accelerated growth and expand our horizons when it comes to a new audience set. We are confident that there is no fear of brand cannibalisation.”
This move comes at a time when India’s organized snacktionar (snacks market) is experiencing significant growth. Bikaji Foods’ shares soared as much as 10% intraday, reaching a record high of Rs 468.90. However, they later settled at a 6.67% increase, trading at Rs 454.75 apiece as of 12:59 p.m., outperforming the NSE Nifty 50’s 0.18% gain.
The traded volume during this period stood at 7.1 times its 30-day average, while the relative strength index indicated potential overbought conditions at 71.55. Despite this, all four analysts tracking the company maintain a ‘buy’ rating on the stock, as per Bloomberg data. The consensus 12-month price target suggests a potential upside of 2%.

CURRENT ISSUE

BEST STARTUPS TO WORK FOR


Top Banner

siliconindia