Mrs Bectors Food IPO: Opens today; Key Details You Should Know Before Subscribing

The Rs 540.54 crore initial public offer (IPO) of the bread and biscuits marker Mrs Bectors Food Specialities will open for subscription today, December 15, 2020, at a price band of Rs 286-288 per share. The public offering will close on Thursday, December 17, 2020.

The IPO comprises fresh issuance of shares worth Rs 40.54 crore and an offer for sale to the tune of Rs 500 crore by existing shareholders. Linus Private Limited, Mabel Private Limited, GW Confectionery Pte Ltd and GW Crown Pte Ltd will be offering stocks in the initial share-sale.

The lot size of the issue is 50 shares. A retail-individual investor can apply for up to 13 lots.

This offer includes a reservation of up to such Equity Shares aggregating up to Rs 50 lakh for purchase by eligible employees. A discount of Rs 15 per equity share shall be offered to eligible employees bidding in the Employee Reservation Portion. The portion reserved for retail investors is 35 per cent, qualified institutional buyers is 50 per cent and that for non-institutional buyers is 15 per cent.

Net proceeds of the issue would be used for financing the project cost towards the expansion of its Rajpura manufacturing facility by establishing a new production line for biscuits and general corporate purpose. Besides, the company aims to achieve the benefit of listing on the stock exchanges. However, the company will not receive any proceeds from the offer for sale. Existing shareholders will receive the proceeds from the offer for sale.

SBI Capital Markets, ICICI Securities and IIFL Securities are the Book Running Lead Managers to the Offer. The equity shares will be listed on BSE and NSE.

About Mrs. Bectors Food Specialties

Mrs. Bectors Food Specialties is one of the leading companies in premium and mid-premium biscuits and premium bakery segments in North India, according to the Technopark Report. The Company's biscuit products are sold under the flagship brand "Mrs. Bector's Cremica", and the premium bakery products are sold under the brand "English Oven". It manufactures and markets a range of biscuits such as cookies, creams, crackers, digestives and glucose - under flagship brand 'Mrs Bector's Cremica'.

The company also manufactures bakery products in savoury and sweet categories which include bread, buns, pizza base and cakes under the brand 'English Oven'. It is a leading biscuit brand in the premium and mid-premium segment in Punjab, Himachal Pradesh, Jammu & Kashmir and Ladakh. Besides, English Oven" is one of the largest selling premium bakery brands in Delhi NCR, Mumbai and Bengaluru.

In FY2020, it had a market share of 4.5 per cent of the premium and mid-premium biscuits market in North India respectively (Technopak Report)

Mrs Bectors Food Specialties supplies its biscuits across 23 states in India through a distribution network comprising of 196 super stockists and 748 distributors supplying to a wide range of customers through 458,000 retail outlets. (Technopak Report)

It is one of the largest suppliers of buns in India to reputed QSR chains like Connaught Plaza Restaurants, Hardcastle Restaurants, Burger King India, and Yum! Restaurants (India). Its revenue from operations, EBITDA and net profits have grown by 18.20 per cent, 84.94 per cent and 282.18 per cent, respectively from September 30, 2019, to September 30, 2020.

A leading exporter of biscuits

It is one of the leading exporters of biscuits from India, with approximately 12 per cent share of the Indian biscuit export market in the calendar year 2019 and it contributes more than 50 per cent by value of biscuit exports from India to countries like South Africa and Uganda (Technopak Report).