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Monday, January 18, 2021

Mrs Bector’s Food Specialties IPO: All you need to know

Mrs Bector's Food Specialties IPO: The company sells biscuits under the brand name "Mrs Bector's Cremica" whereas bakery products are manufactured under the brand name of "English Oven".

By: Express Web Desk | New Delhi | Updated: December 16, 2020 9:55:05 am
mrs bectors ipoImage source: English Oven's website

Mrs Bector’s Food Specialties IPO: The Rs 540.54 crore initial public offering (IPO) of biscuits and breads maker Mrs Bectors Food Specialities opened on Tuesday and it will be available for subscription till Thursday, December 17, 2020. The price band of the IPO has been fixed at Rs 286-288 per share.

The company sells biscuits under the brand name “Mrs Bector’s Cremica” whereas bakery products are manufactured under the brand name of “English Oven”.

Investors who wish to subscribe to Mrs Bectors Food Specialities’s IPO can bid in the lot of 50 equity shares and multiples thereof. At the upper price band, they will have to shell out Rs 14,400 to get a single lot of Mrs Bectors Food Specialities. The shares will be listed on both BSE and the National Stock Exchange (NSE).

Investors must note that the cut-off time for UPI mandate confirmation is Friday, December 18, 2020 upto 12:00 pm failing which their application may not be considered.

The IPO comprises of a fresh issue of shares amounting to Rs 40.54 crore and offer for sale of Rs 500 crore by the existing shareholders. Linus Private Limited, Mabel Private Limited , GW Confectionary Pte Ltd and GW Crown Pte Ltd will be selling shares in the offer.

Ahead of its IPO, the company on Monday raised Rs 162 crore from its anchor investors. Mrs Bectors has decided to allot more than 56.25 lakh shares at a price of Rs 288 apiece to the anchor investors.

SBI Capital Markets, ICICI Securities and IIFL Securities are the lead managers to the Mrs Bectors Food Specialities IPO while Link Intime India is the registrar to the issue.

The funds raised from the IPO will be used for Rajpura Manufacturing Facility project to establish new biscuits production line (Rs.40.54 crore). Proceeds from OFS will be paid to the selling shareholders and the company will not receive any such proceeds.

Mrs Bectors Food Specialities is a key supplier of burger buns and other bakery products to restaurant chains such as McDonald’s India (Connaught Plaza Restaurants Pvt. Ltd. and Hardcastle Restaurants Pvt. Ltd), Burger King India, Yum! Restaurants (India) Private Limited, PVR and Rebel Foods (Faasos).

Geojit Financial Services and LKP Securities in their respective research notes have recommended “Subscribe” to the offer.

“At the higher price band of Rs 288, the stock is valued at 28x TTM earnings of Rs 10.32, which looks quite attractive considering the brand equity, distribution network, strong fundamentals and robust growth prospects. We recommend investors to SUBSCRIBE for this initial public offering of Bectors Food Specialties Ltd,” LKP Securities wrote in their report.

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