Mrs Bectors Foods IPO: The company, Mrs Bectors Food Specialties, has raised Rs 162 cr from anchor investor’s yesterday, ahead of the opening of its Rs 541 cr initial opening offer (IPO).  Mrs Bectors Foods allotted a total of 56,25,415 shares at Rs 288 per share to anchor investors including Nomura, Goldman Sachs India, HDFC Life Insurance Co, Sundaram Mutual Fund, Bajaj Allianz Life Insurance Co and Aditya Birla Sun Life Insurance Co. Of the total anchor allotment, 29,75,850 shares were allotted to seven mutual funds who had applied through a total of 23 schemes.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Mrs Bectors Foods IPO is a fresh issue of equity shares amounting to Rs. 40.5 crore and an offer for sale of Rs. 500 cr. Mrs Bectors Foods IPO price band is Rs. 286-288 per share. At the lower and upper price band, the fresh equity issue amounts to 14.1-14.2 lakh shares, while the OFS has a size of around 1.74 crore shares. Mrs Bectors Foods IPO last day is tomorrow. 

After the bumper listing of Burger King, Retail Investors are excited about this Mrs Bectors Foods IPO. They are expecting good listing gains as the current market momentum is extremely strong and the mood of the global and local investors is upbeat. If allotted, analysts believe this will bring cheers on the face of Retail Investors. 

SBI Capital Market; ICICI Securities & IIFL Securities are the Book running lead managers for the Mrs Bectors Foods IPO. It is Fresh issue of equity shares (14.1-14.2 lakh shares based on price band) and offer for sale (OFS) 1.74 cr shares. Bid lot is of 50 shares and in multiple thereof. 

About Mrs Bectors Foods: 

Mrs. Bectors Food Specialities Ltd (MBFS) is one of the leading companies in the premium and mid-premium biscuits segments and the premium bakery segment in North India. It has a 4.5% market share, according to the Technopak Report. The company manufactures and markets a range of biscuits such as cookies, creams, crackers, digestives and glucose under flagship brand ‘Mrs. Bector’s Cremica’. Its offerings also include sweet and savoury bakery products such as breads, buns, pizza bases and cakes under the brand ‘English Oven’. MBFS caters to retail consumers in 26 states (through 748 distributors who supply to 458,000 retail outlets and 4,422 preferred outlets) in India, reputed institutional customers with a pan-India presence and to 64 countries across six continents as of FY2020. 

See Zee Business Live TV Streaming Below:

‘Mrs. Bector’s Cremica’ is one of the leading biscuit brands in the premium and mid-premium segment in Punjab, Himachal Pradesh, Jammu and Kashmir and Ladakh and ‘English Oven’ is the one of the largest-selling premium bakery brands in Delhi NCR, Mumbai and Bengaluru. The company is the largest supplier of buns in India to reputed QSR chains such as Burger King India Limited, Connaught Plaza Restaurants Private Limited, Hardcastle Restaurants Private Limited, and Yum! Restaurants (India) Private Limited.  

The company also manufactures ‘Oreo’ biscuits and ‘Chocobakes’ cookies on a contract basis for Mondelez India Foods Private Limited. A widespread and established distribution network, strong product portfolio in the biscuits and bakery category and preferred supplier to some of the largest QSR franchisee are some of the key strengths of the company. A key risk would be that the company would be unable to get into a new category under the Cremica brand due to restriction on use of brand name – Mrs. Bector’s Cremica under the Brand Separation MoU signed in November 2013.