The proceeds of the fresh situation will be utilised for financing the project price towards expansion of the Rajpura Manufacturing Facility
Bread and biscuits maker Mrs Bectors Food Specialities will launch its initial public give (IPO) on 16 December 2020. The organization is searching to raise Rs 540.54 crore by means of this situation. The situation will stay open for 3 days till 18 December 2020. The IPO would comprise of a fresh situation of equity shares worth Rs 40.54 crore and an give for sale (OFS) by current shareholders worth Rs 500 crore. The organization has set a price tag band of Rs 286-288 apiece. One can apply for Mrs Bectors Food Specialities IPO with a lot size of 50 shares for Rs 14,400.
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Use of IPO proceeds
The organization will not obtain any proceeds from the Offer for Sale. The proceeds of the fresh situation will be utilised for financing the project price towards the expansion of the Rajpura Manufacturing Facility by establishing a new production line for biscuits.
Mrs Bectors Food Specialities is the biggest supplier of buns to swift service restaurant (QSR) chains such as McDonald’s, KFC, Burger King and Carl’s Jr. It also tends to make and sells breads, buns and other bakery goods below the brand name ‘English Oven’ and biscuits and cookies below the brand name ‘Cremica’.
Grey marketplace premium
Today in the grey marketplace, Mrs Bectors Food Specialities shares had been noticed trading at Rs 418, a premium of 45 per cent more than the situation price tag of Rs 288 apiece, according to an independent dealer in unlisted shares. SBI Capital Markets, ICICI Securities and IIFL Securities are the book operating lead managers, although Link Intime India is the registrar to the situation. Anoop Bector is the promoter of Mrs Bectors Food Specialities.
Investor quotas
Up to 50 per cent of the situation will be reserved for Qualified Institutional Buyers (QIB) although 35 per cent will be reserved for retail investors and not much less than 15 per cent for the non-Institutional Investors (NIIs). The employee reservation portion would be up to Rs 50 lakh. Mrs Bectors Food Specialities is supplying a discount of Rs 15 per equity share to staff.
Business outlook
“The company has shown lackluster growth in the past couple of years while the company has shown good growth in the first quarter of 2020 like other FMCG peers mostly due to change in eating habits of people amid lockdown,” Abhay Doshi, a Gujarat primarily based independent dealer in unlisted shares, told TheSpuzz Online. Highly competitive business and weak development may perhaps stand against the organization in the longer run. Current marketplace situations may perhaps favour the organization on listing, he added.