{"id":693,"date":"2020-12-12T04:13:32","date_gmt":"2020-12-12T04:13:32","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=693"},"modified":"2021-04-06T05:42:38","modified_gmt":"2021-04-06T05:42:38","slug":"mrs-bector-food-ipo-will-hit-the-primary-market-on-december-15-should-you-subscribe","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/mrs-bector-food-ipo-will-hit-the-primary-market-on-december-15-should-you-subscribe\/","title":{"rendered":"Mrs. Bector Food IPO Will Hit The Primary Market On December 15. Should You Subscribe?"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div>\n<p>In a country like India, where farmers and agriculture\nsector is given foremost priority, premium valuations to FMCG stocks could not\nbe restricted. FMCGs are considered as defensive, necessity and growth-oriented\nstocks in a portfolio by think tanks. One could easily look at the success\nstories of HUL, Britannia, Dabur, Marico, Nestle and Tata Consumer Products and\nthe returns which they have generated for the investors.&nbsp; It is inevitable to say that IPOs have been\ngiven a delight welcome in recent months due to rising market and in order to get\nthe benefits of up-trending equity market, premium-biscuit maker and leading\nbun supplier Mrs. Bectors Food Specialities is set to launch on. This is the\nsecond attempt (earlier was in 2018) of Ludhiana-based biscuit maker to get\nlist on the Indian bourses which has been finalized after seeing the\noverwhelming response of investor\u2019s towards Burger King India IPO which has\nbeen subscribed 157 times.<\/p>\n\n\n\n<p>The issue size is a mix of fresh issue of Rs. 40.5 crores and offer for sale of Rs. 500 crore by Linus Pvt Ltd, Mabel Pvt Ltd, GW Crown Pte Ltd and GW confectionary Pte Ltd. According to Draft Red Herring Prospectus, the issue comprises of Rs. 40.5 crores to be raised from issuance of fresh equity will be utilized for financing Rajpura Expansion project while the residual will be used for augmenting general corporate purposes.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"counter-hierarchy counter-decimal ez-toc-grey\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list\"><li><a href=\"#Mrs_Bector_Food_Specialties_IPO_Details\" title=\"Mrs.\nBector Food Specialties IPO Details:\">Mrs.\nBector Food Specialties IPO Details:<\/a><\/li><li><a href=\"#About_the_Company\" title=\"About the Company\">About the Company<\/a><\/li><li><a href=\"#Industry_Growth_Drivers\" title=\"Industry Growth\nDrivers\">Industry Growth\nDrivers<\/a><\/li><li><a href=\"#Financials\" title=\"Financials\">Financials<\/a><\/li><li><a href=\"#Book_Runners\" title=\"Book Runners\">Book Runners<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Mrs.\nBector Food Specialties IPO Details:<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Issuer Company: Mrs. Bectors Food Specialties.<\/li><li>Industry: &nbsp;Bakery Products<\/li><li>IPO Size: 540 cr.<\/li><li>Price Band: 286-288<\/li><li>Issue Open Date: 15 Dec, 20<\/li><li>Issue Close Date: 17 Dec, 20<\/li><li>Listing Date: 28 Dec, 20<\/li><li>Minimum Lot Size: 50 shares<\/li><li>Employee Discount: 15 Rs. Per share<\/li><li>Face Value: 10 Rs. Per share<\/li><li>Retail Allocation: 35%<\/li><li>Listing Exchange: NSE, BSE<\/li><\/ul>\n\n\n\n<p>Must Read: <a href=\"https:\/\/www.invest19.com\/blog\/this-is-how-tech-savvy-brokerage-houses-could-retire-stock-sip-strategy-and-bring-a-new-mechanism\/\">This is how tech-savvy brokerage houses could retire Stock SIP strategy and bring a new mechanism?<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About the Company<\/strong><\/h2>\n\n\n\n<p>Started as an enterprise in 1978 on the foundation of\nquality, freshness and taste, Mrs. Bector Food Specialties has become the\nlargest bun supplier to QSR (quick service restaurants) chain in India. The\ncompany is the leading producer of non-glucose biscuits and premium breads in\nNorth India. The company sell its products under the brand names of \u2018Cremica\u2019\nand \u2018English Oven\u2019 in which the former brand name is stick to selling premium\nbiscuits while the latter one is connected to breads and buns. The company has kept\ndelighting the customers by providing consistent taste in their products and customization\nof bread segments as they are catering the requirements of Burger King and\nMcDonalds. The company is known for its innovative offerings as the changing\nconsumption pattern of people, packaging and its commitment to quality. The\ncompany has food certifications from BRC, USFDA and FSSC. It is a leading\nexporter in 64 countries.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Industry Growth\nDrivers<\/strong><\/h2>\n\n\n\n<p>The organized Indian bakery industry has gained &nbsp;a lot of traction in last decade as a shift in\ntraditional pattern of Indian families from buying bakery products from local\nstores to organized and quality-assured bakery &nbsp;has gained their sales, which has assured a constant\ngrowth of the Indian bakery market. The rationale behind favoring for organized\nbakery products are accounting transparency, continuous updating in their\nproduct offerings, less outlets penetration and organized operations with\nquality control, which will keep the ongoing momentum intact. As Indian\nfamilies are getting more health conscious and offerings from organized\nbakeries is an optimal fit for their dining.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Financials<\/strong><\/h2>\n\n\n\n<p>On the financial front, the company had reported a net\nprofit of 30.40 crores for the year ending 2020. The company do not claims the\ntag of debt-free as an amount of Rs. 90.88 crores in the form of non-current\nliability is occupied in balance sheet. Return on Equity of the company stands\nat 9.53% while the Return on Capital Employed stands at 7.5%. The company is\nraising funds for the purpose of expansion and shorter cash conversion cycle\nwill keep restricting their working capital requirements. In the listed space,\nthe company will face tough competition from Britannia and ITC. However, the rising\ntrends in QSR chains will keep the momentum of \u2018English Oven\u2019 intact.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Book Runners<\/strong><\/h2>\n\n\n\n<p>SBI Capital Markets Limited, ICICI Securities Limited and IIFL Securities Limited are the book running lead managers to the issue.<\/p>\n\n\n\n<p>Also Read: <a href=\"https:\/\/www.invest19.com\/blog\/heranba-industries-received-green-signal-from-sebi-to-raise-rs-700-crores\/\">Heranba Industries Received Green Signal From SEBI To Raise Rs. 700 Crores<\/a><\/p>\n<div class='epvc-post-count'><span class='epvc-eye'><\/span>  <span class=\"epvc-count\"> 4,490<\/span><\/div><div class=\"pld-like-dislike-wrap pld-template-1\">\n    <div class=\"pld-like-wrap  pld-common-wrap\">\n    <a href=\"javascript:void(0);\" class=\"pld-like-trigger pld-like-dislike-trigger \" title=\"\" data-post-id=\"693\" data-trigger-type=\"like\" data-restriction=\"ip\" data-ip-check=\"0\" data-user-check=\"1\">\n                        <i class=\"fas fa-thumbs-up\"><\/i>\n                    <\/a>\n    <span class=\"pld-like-count-wrap pld-count-wrap\">15    <\/span>\n<\/div><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>In a country like India, where farmers and agriculture sector is given foremost priority, premium valuations to FMCG stocks could not be restricted. FMCGs are [&hellip;] <span class=\"read-more-link\"><a class=\"read-more\" href=\"https:\/\/www.invest19.com\/blog\/mrs-bector-food-ipo-will-hit-the-primary-market-on-december-15-should-you-subscribe\/\">Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":694,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[70,2],"tags":[],"class_list":["post-693","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ipo","category-stock-market"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/693","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=693"}],"version-history":[{"count":4,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/693\/revisions"}],"predecessor-version":[{"id":698,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/693\/revisions\/698"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/694"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}