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Mrs Bectors IPO Open Date: Mrs Bectors Food IPO Opens Tomorrow, GMP 70% Increase; Should You Subscribe Or Not?

Mrs Bectors IPO Open Date: Mrs Bectors Food Specialities markets and sells a bakery products in savoury and sweet categories which include buns, breads, pizza bases and cakes under the brand ‘English Oven’.

Mrs Bectors IPO Open Date Is 15th December, 2020 and GMP Surges 70%

Mrs Bectors Food IPO is scheduled to open for subscription on Tuesday(Tomorrow). The Rs 540-crore public issue will be sold in the price band of Rs 286-288 per Share. The IPO would consist of a fresh issue of Rs. 41 crore and an offer-for-sale (OFS) of Rs. 500 crore by the existing PE investors.

The company markets and sells a range of bakery products in savoury and sweet categories which include breads, buns, pizza bases and cakes under the brand ‘English Oven’.

Mrs Bectors IPO Open Date

Ahead of IPO subscription, Mrs Bectors Food shares were seen trading with Rs 200-202 premium over the issue price of Rs 288 Per Share in the grey market price today. The shares were trading at Rs 409 Per Share, implying a premium of 70.13% over the issue price.

Investors can apply for Mrs Bectors Food IPO with a lot size of 50 shares for Rs 14,400. Being a flagship brand, Mrs Bectors Cremica is one of the leading biscuit brands in the premium and mid-premium segments across North India with a market share of 4.5% and its bakery products brand ‘English Oven’ is also one of the largest selling brands in Tier-I & II cities with a market share of 5% in the branded breads segments in India.”

Mrs Bectors IPO Open Date

“The company caters to well-renowned brands such as PVR, Burger King, McDonald’s in India and has a budding exports business contributing to 22 per cent of its revenues. “Financially too, this company has shown strong revenue CAGR of 12 per cent compared to a 10 per cent CAGR by Britannia Industries in FY17-19,” Nirali Shah, Senior Research Analyst, Samco Securities, said.

Should You Subscribe To Mrs Bectors Food IPO?

Nirali Shah, Senior Research Analyst, Samco Securities said that its free cashflows have improved from the previous year and its debt to equity ratio has also been on a decline despite the pandemic. Mrs Bectors trades at a lower valuation multiple of 53.9x-54.2x P/E compared to its peer Britannia Industries which is trading at a 62.3x P/E which makes it a good bet from a subscription standpoint.

“However, a number of risks such as stiff competition, higher dependency on the north Indian market for growth and a premium category target market which might not appeal to the rural and semi-urban areas make Mrs Bectors a prime candidate solely for listing gains,” Nirali Shah added.

“We recommend investors to SUBSCRIBE for this initial public offering of Bectors Food Specialties Ltd,” Analysts at LKP Securities said.

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