Shares of this small-cap FMCG stock hit an all-time high today after the acquisition of another company involved in the same business. In Wednesday’s trading session, the scrip jumped more than 6 percent.
The stocks of Bikaji Foods International Limited opened their trading session today at Rs 428 and currently trade at Rs 453.75. The scrip witnessed an intra-day high of Rs 468.95, also marked as the company’s all-time high mark, indicating a gain of around 10 percent as compared to the previous closing levels of Rs 426.30 apiece.
The stock showed such movements after the company announced the acquisition of a 49 percent stake in “Bhujialalji Private Limited” (BPL) today, thereby, becoming an associate company of Bikaji Foods.
The listed FMCG company has bought 9,608 equity shares as well as 396 Compulsorily Convertible Debentures (CCDs) of BPL at a price of Rs 5,100 making it an aggregate consideration of approximately Rs 5.10 crores.
The acquisition is done with the main objective to strengthen the company’s presence in the segment and for future expansion of the company.
Having a walkthrough of the latest financials, the company, on a consolidated basis, has reported an increase from Rs 1,610 crores during FY21-22 to Rs 1,966 crores in FY22-23. Moreover, the after-tax profits moved up from Rs 76 crores to Rs 126 crores keeping the timeframe the same.
The shareholding pattern data, as per the June 2023 quarter, exhibit the Promoters holding a 75.37 percent stake, and the Foreign Institutional Investors (FIIs) holding a 5.46 percent stake in the company.
With a global presence, Bikaji Foods International Limited is a fast-moving consumer goods (FMCG) brand involved in the sale of snacks and sweets. The company’s product range includes categories such as Bhujia, packaged sweets, assorted packs, frozen food, cookies, etc.
Written by Amit Madnani
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