Mrs Bectors IPO: Should you buy into this food issue or leave? Market Guru Anil Singhvi recommends THIS strategy for investors
After a successful IPO of Burger King followed by a bumper listing, all eyes are now trained on Mrs Bectors Food IPO, which is set for opening on Tuesday. What should the investors do with this issue? Zee Business Managing Editor Anil Singhvi has some incisive tips to generate great returns
Mrs Bectors IPO: After a successful Initial Public Offering (IPO) of Burger King followed by a bumper listing, all eyes are now trained on Mrs Bectors Food IPO, which is set for opening on Tuesday. What should the investors do with this issue? Zee Business Managing Editor Anil Singhvi has some incisive tips to generate great returns. So, should investors buy into Mrs Bectors IPO or leave? See what the Market Guru recommends here!
The IPOs that have been coming so far have been quite good for people’s wealth, the Market Guru said giving the example of Burger King where many investors made handsome amounts of money. Burger King was all about food too. Mrs Bectors Food is into the business of making biscuits and bakery items. Singhvi said that it is a good brand with its own market. The Mrs Bectors IPO valuations of this issue are reasonable, which is a plus for this issue. There could be listing gains in this issue, Singhvi said.
The presence of quality investors in Mrs Bectors Food anchor book gives some level of comfort for the investors. The promotes have been associated for over 25 years with this company.
Mrs Bectors IPO: Causes of concerns
The Managing Editor said that one of the concerns with Mrs Bectors IPO is regarding the company's growth in the last three years. It is not as it should have been, he opined. Though, 2020 has proved to be a good year for the company.
He said that this segment is also very competitive.
Mrs Bectors IPO: What should investors do and How much gain can they expect?
Short term investors who put money for listing gains can go ahead and invest in Mrs Bectors Food IPO. He said that it was unlikely that the listing would happen below the issue price. This will ensure capital protection and there could be some listing gains too. Anything around 20-25 per cent is a good return in this IPO, he suggested.
As for long term investors, they should also put money in Mrs Bectors IPO for two reasons – one is that it was unlikely that the prices will go below the issue price and the second is that there will be enough cushion between the listing price and the issue price.
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The price band of this share is at Rs 286-Rs 288. The lost size is 50 shares which requires a minimum investment of Rs 14,400.
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