Packaged foods player Bikaji Foods International's shares jumped nearly five percent to a fresh 52-week high on August 26, after the company announced acquisition of a 55 percent stake in Madhya Pradesh-based snacks and frozen foods firm Ariba Foods.
"This strategic investment, totalling Rs 60.49 crore, will enable Bikaji to enhance
its frozen food production capabilities and expand its market presence," the company said in an exchange filing.
At 10.10 am, Bikaji Foods International shares were quoting Rs 864.7 on the NSE, up 1.17 percent compared to the previous session's closing price.
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Deepak Agarwal, Managing Director of Bikaji Foods International said, “This strategic move not only strengthens our capacity for export growth but also supports our entry into the QSR segment. By integrating Ariba’s state-of-the-art production capabilities, we aim to enhance our frozen snacks and savouries manufacturing.”
Domestic brokerage Nuvama Institutional Equities retained its 'Buy' on Bikaji, and said the acquisition is in line with the plan to increase share of frozen food revenue to Rs 200 crore over the next three–four years as against Rs 30–33 crore currently. Nuvama has a target price of Rs 885 per share on Bikaji Foods, indicating an upside of around 3.5 percent.
The acquisition would enhance Bikaji's backward integration and secure frozen food supply, Nuvama said. Bikaji will partly shift its current frozen snacks and savouries manufacturing to Ariba Foods’ manufacturing facility at Ujjain, Madhya Pradesh.
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