Mrs. Bectors Food Specialities shares were available at a 76 percent premium over its IPO price, within the grey market, on its first day of bidding.
The trading premium increased significantly to Rs 220 (up 76 percent over upper IPO price band of Rs 288 per share) on December 15 from Rs 170 (59 percent higher over upper IPO price band) on December 11, the grey market data available on the web site of IPO Central showed.
The initial public offering of biscuits and bakery products maker has opened for subscription on December 15 and can close on December 17, with a price band of Rs 286-288 per share.
Mrs. Bectors Food Specialties IPO opens:
The public issue was fully subscribed on its first day of bidding itself. At the time of publishing this copy, it had been subscribed 6 times because the portion put aside for retail investors witnessed a subscription of 10.7 times, non-institutional investors 2.2 times which of qualified institutional investors 41 percent.
The IPO consists of a fresh issue of Rs 40.54 crore and a suggestion purchasable of Rs 500 crore by public shareholders – Linus, Mabel, GW Crown PTE Ltd, and GW Confectionary PTE Ltd.
Mrs. Bectors Food Specialities had also received an honest response from anchor investors on December 14 and raised Rs 162 crore from them at Rs 288 per share.
“Mrs. Bector IPO is priced lower compared to the peers on the valuation front making it a robust candidate for stellar listing. We expect the IPO to be subscribed manifold times,” Keshav Lahoti, Associate Equity Analyst at Angel Broking told Moneycontrol.
Mrs. Bectors Food Specialties IPO opens: do you have to subscribe?
“We are positive on the longer term outlook for the industry also because the company, so we’ve recommended subscribing to the difficulty for future also as for listing gains,” he said.
Mrs. Bectors Food Specialities is one among the leading companies within the premium and mid-premium biscuits segment and therefore the premium bakery segment in North India, with a market share of around 4.5 percent within the premium and mid-premium segments.
The company manufactures biscuits under its flagship brand ‘Mrs. Bector’s Cremica’, and bakery products under the brand ‘English Oven’.
Bectors Food is that the largest supplier of buns in India to reputed quick services restaurant chains like Burger King India, Connaught Plaza Restaurants, Hardcastle Restaurants and Yum! Restaurants (India).