23 per cent return in just 3 months: This FMCG company acquires 49 per cent stake and 396 CCDs in Bhujialalji!
Over the past five years, the company achieved an impressive 18.9 per cent CAGR.
On Thursday, the Sensex and Nifty indices commenced the trading session with a marginal decline of 0.15 per cent each, reflecting a cautious start in the stock market.
Contrary to dampening market sentiments, the shares of Bikaji Foods International Limited surged 2.81 per cent. Additionally, the scrip witnessed spurt in volume by 1.14 times. This indicates heavy buying among investors. The company's current market capitalization is Rs 11,513.63 crore.
On July 19, 2023, Bikaji Foods International Limited has successfully acquired a 49 per cent stake and 396 Compulsorily Convertible Debentures (CCDs) in Bhujialalji Private Limited, an emerging company operating in the ethnic snacks industry.
The deal involved 9,608 equity shares and 396 CCDs at Rs 5100 value per security aggregating to Rs 5.10 crore. Notably, the equity shares hold a face value of Rs 10 per share.
Bhujialalji Private Limited (BPL) is a recent addition to the market, offering a range of well-known Bhujia and namkeen varieties in its product lineup.
"We are happy to announce the successful acquisition of a significant 49 per cent stake in Bhujialalji Pvt. Ltd. This marks a small step in our big growth plans and we are confident that there is no fear of brand cannibalisation; infact, multiple companies across the globe operate similarly. Our strategic vision for this collaboration is to leverage synergies that enhance the overall market position Bikaji, while continuing to function independently. With the company strategically headquartered in Bikaner, this acquisition will help us leverage the learnings of this new brand to enable accelerated growth and expand our horizon when it comes to a new audience set. Our vision is to reach every household in India and this is our small step towards the big growth plans,’ says Deepak Agarwal, Managing Director, Bikaji Foods International Limited.
On the occasion, Jai Agarwal, Promoter, Bhujialalji Pvt Ltd said "We are grateful to have this support from a market leader like Bikaji so early in our journey. This collaboration opens new doors for us, allowing us to learn and grow while preserving our brand salience. We are hoping to geographically expand our current market base, ranging from e-commerce to modern trade channels."
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Bikaji Foods International Limited stands tall as a prominent player in India's fast-moving consumer goods (FMCG) segment. Distinguished by its extensive product line, the company proudly presents six core categories that cater to diverse tastes: the irresistible allure of bhujia and namkeen, the delightful sweetness of packaged sweets, the crispiness of papad, the indulgence of western snacks, and an assortment of other snacks, including gift packs, frozen food, mathri range, and cookies.
Over the past five years, the company achieved an impressive 18.9 per cent Compound Annual Growth Rate (CAGR). CAGR is a financial metric that smoothens fluctuations, facilitating easy comparisons and reflecting steady long-term growth.
The stock has gained momentum in past 3 months as it has surged more than 23 per cent. investors to keep close eye on this trending stock.