Mrs Bectors Food Specialities’ IPO was subscribed a enormous 197.36 occasions by investors at the time of closing bell on Thursday. The 3 day bidding procedure came to a close with all categories of investors oversubscribing their portion of the problem. Non-institutional Investors showed the most interest in Mrs Bectors, subscribing 621 occasions. With this Mrs Bectors has out-completed the subscription price of Burger King — the youngest stock to debut on Dalal Street. Burger King — 1 of the most lucrative listings on the bourses this year — was subscribed 156 occasions by investors.
Qualified Institutional Buyers (QIB) have bid for their portion 175 occasions. Retail investors bid for 28 occasions and staff of the firm oversubscribed the problem 43.77 occasions. Non-institutional investors had been the most aggressive bidders for the problem. The Rs 540 crore problem of Mrs Bectors gives 1.32 crore shares but bids have so far been received for 250 crore shares.
In the unlisted space, shares of Mrs Bectors Food have gained additional and are trading at 80% premium. “Although volatile but Mrs Bectors Food is trading at a grey market premium of Rs 225-230 in the grey market,” Manan Doshi, Cofounder of UnlistedArena.com a firm dealing in unlisted & pre-IPO shares told TheSpuzz Online.
Analysts had been expecting higher subscription figures for Mrs Bectors soon after the accomplishment of Burger King IPO earlier this week. “Company (Mrs Bectors) results were better than the industry in the first half of the fiscal 2021. Peers such as Britannia Industries, Nestle India, Prataap Snacks and DFM Foods are trading at trailing PE of 50.2, 85.6, 57.1 and 97.6 respectively,” mentioned Keshav Lahoti, Associate Equity Analyst, Angel Broking. The IPO, priced at Rs 286-288 per share is at a trailing PE of 27.9. “Given the significant discount compared to listed peers there is comfort on the valuation. We are positive on the long term growth prospects of the industry and the company, and hence recommended to “Subscribe” to the problem for extended term as effectively as for listing gains,” he added.
Mrs Bectors Food is the biggest supplier of buns in India to swift service restaurants (QSR) chains such as Burger King, McDonald’s, KFC, Carl’s Jr, Pizza Hut and Dominos Pizza. Investors are now rallying behind Mrs Bectors to replicate the gains of Burger King. The QSR market main debut on the bourses at a 92% premium and helped investors pocket more than 3 occasions returns in the initial days of trading.