PremiumThe IPO of bread and biscuits maker Mrs Bectors Food opened today to strong demand and was over-subscribed in just two hours. The issue will close on December 17. As of 12:30 pm, the IPO was subscribed 1.57 times with the retail segment subscribed nearly 3 times. The Mrs Bectors Food comes in the wake of stellar response to Burger King IPO whose shares doubled on the day of their listing on Monday. The price band in Mrs Bectors Food IPO has been fixed at ₹286-288 per equity share of a face value of ₹10 each. The company sells biscuits under the 'Cremica' brand and manufactures and markets a wide range of biscuits such as cookies, creams, crackers, digestive biscuits, and an array of premium breads under the 'English oven' brand.
Mrs Bectors Food is also a supplier of buns to quick-service restaurant (QSR) chains such as McDonald's, KFC, Burger King and Carl's Jr among others.
Here are 10 things to know about Mrs Bectors Food IPO:
1) The minimum bid lot is 50 equity shares and multiples of 50 equity shares.
2) Indicative timeline of Mrs. Bectors Food IPO, according to brokerages:
Finalisation of Basis of Allotment: 22th December
Refunds/Unblocking ASBA Fund: 23th December
Credit of equity shares to DP account: 24th December
Listing on 28th December
3) The IPO comprises fresh issue of equity shares worth ₹40.54 crore and an offer for sale (OFS) by some private equity players worth ₹500 crore.
4) As the promoter is not selling any equity, they will continue to hold over 51% of the shareholding after the IPO. Post IPO, the shareholding of promoters will fall to 51.13%, from 52.39%.
5) The funds raised through the IPO will be utilised for brown-field expansion of its Rajpura manufacturing unit and establishing a new production line.
6) The company currently exports to around 60 countries.
7) Mrs. Bectors Food revenue from operations jumped from ₹690 crore in FY18 to ₹762 crore in FY20. In first half of this fiscal (FY21), its revenues had jumped to ₹430.99 crore.
8) "Mrs. Bectors Food has shown a improvement in its financials over the last three years on various parameters such as margins, cash flows, working capital and borrowings. The company has improved its EBIDTA margins from 12% in FY18 to 17% in H1FY21 with overall improvement in the gross margins by 400 bps over the same period. PAT margins further witnessed incremental expansion owing to lower finance costs," said LKP Securities, which has a subscribe rating on the IPO.
9) Mrs. Bectors Food has six manufacturing facilities across India. The company has received several quality certifications and accreditations, including certification from the FSSC 22000, the U.S. Food and Drugs Administration, and British Retail Consortium (BRC).
10) SBI Capital Markets, ICICI Securities and IIFL Securities are the books running lead managers of the issue.
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