|| Mrs Bectors Food IPO Review ||BUMPER LISTING के लिए हो रहा है तैयार || IPO में दिल खोल कर लगाए!!

The Rs 540-crore initial public offer (IPO) of Mrs Bectors Food Specialities will open for two days on Tuesday (December 15). The price band has been fixed at Rs 286-288 per share.

The IPO comprises fresh issuance of shares worth Rs 40.54 crore and offer for sale to the tune of Rs 500 crore by existing shareholders. Linus Private Limited, Mabel Private Limited , GW Confectionary Pte Ltd and GW Crown Pte Ltd will be offering stocks in the initial share-sale.
Net proceeds of the issue would be utilised for financing the project cost towards expansion of its Rajpura manufacturing facility by establishing a new production line for biscuits and for general corporate purpose. In addition, the company aims to achieve the benefit of listing on the stock exchanges.

SBI Capital Markets, ICICI Securities and IIFL Securities will manage the IPO.The equity shares will be listed on BSE and NSE.

About the company

Mrs Bectors Food, incorporated on September 15,1995, is a premium biscuit maker and supplier of buns to restaurant chains, such as McDonald’s. The company manufactures and markets a range of products such as biscuits, breads and buns. It markets a wide variety of biscuits and bread under the flagship brand "Mrs Bector''s Cremica" and the "English Oven" respectively.

The company is one of the leading companies in the premium and mid-premium biscuits segment and the premium bakery segment in North India.

The company supplies its products to retail consumers in 26 states within India, as well as to reputed institutional customers with pan-India presence and to 64 countries across six continents during the Financial Year ended March 31, 2020. For Biscuits distribution, the company has a widespread network of 196 super-stockists and 748 distributors supplying to a wide range of customers through 458,000 retail outlets and 4,422 preferred outlets.

According to brokerages, among the company's competitive strengths are: the company is a leading exporter of biscuits, it has established presence in retail and institutional bakery business, boasts of modern and automated production processes with a focus on quality control, and has a wide spread and established sales and distribution network. Besides, the company has an experienced promoter and management team.

On the other hand, the company's lack of long-term contracts with its QSR customers and overdependence on biscuits business are the key risks, going forward.

Here's what leading brokerages suggest regarding the offer.

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