Mrs Bectors Food IPO: Last date to apply is today; listing gains expected, says Market Guru Anil Singhvi

Today is the last day to invest in Mrs Bectors Food IPO, says Anil Singhvi. He recommends applying for this IPO for listing gains and investing money for the long term. Today is the last day to apply for the issue - over the last 2 days IPO was subscribed 11.5x

Mrs Bectors Food Specialities Ltd (MBFS) has come out with an initial public offer (IPO), comprising a fresh issue of equity shares amounting to Rs. 40.5 crore and an offer for sale of Rs. 500 crore. The price band is Rs. 286-288 per share. At the lower and upper price band, the fresh equity issue amounts to 14.1-14.2 lakh shares, while the OFS has a size of around 1.74 crore shares. The issue opened on December 15th (Tuesday) and closes today.

SBI Capital Market; ICICI Securities & IIFL Securities are the Book running lead managers for the issue. It is Fresh issue of equity shares (14.1-14.2 lakh shares based on price band) and offer for sale (OFS) 1.74 cr shares. Bid lot is of 50 shares and in multiple thereof. 

About the company: 

Mrs. Bectors Food Specialities Ltd (MBFS) is one of the leading companies in the premium and mid-premium biscuits segments and the premium bakery segment in North India. It has a 4.5% market share, according to the Technopak Report. The company manufactures and markets a range of biscuits such as cookies, creams, crackers, digestives and glucose under flagship brand ‘Mrs. Bector’s Cremica’. Its offerings also include sweet and savoury bakery products such as breads, buns, pizza bases and cakes under the brand ‘English Oven’. MBFS caters to retail consumers in 26 states (through 748 distributors who supply to 458,000 retail outlets and 4,422 preferred outlets) in India, reputed institutional customers with a pan-India presence and to 64 countries across six continents as of FY2020.

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The company has a network of 4422 preferred outlets. It focuses more on digital marketing initiatives such as social media integration, influencer marketing and content marketing. Started brand promotions in various e-Commerce channels for biscuits and bakery products and are listed with various e- commerce platforms in India. The company’s biscuit business revenues grew at a CAGR of 7.5% over FY 2018-20 to Rs 283.5 cr and has gross margins of 46%. The company also has developed the brand ‘English Oven’ for 152 bakery products businesses. According to industry reports, ‘English Oven’ is currently one of the fastest growing large-scale bakery brands in India and is one of the largest selling brands in the premium bakery segment in Delhi NCR, Mumbai and Bengaluru. The company’s retail bakery business grew at a CAGR of 29% over FY2018-20 to Rs130.2crore and has gross margins of 53.5%.