Mrs. Bector Food Specialities Ltd (MBFS) is coming out with an Initial Public Offering (IPO) of INR 540 crore which is open for bidding from tomorrow. The price band is set at Rs. 286-288 per share. The fresh equity will amount to 14.1-14.2 lakh shares respectively to lower and upper price band. Reportedly, the OFS has a size of 1.74 crores.
About the Mrs Bectors Company:
Mrs Bector Food Specialities Ltd (MBFS) is one of the best companies in the premium biscuit segment in the Indian market. The company also holds its claws firmly on the bakery segment in North India. According to the Technopak Report, it has a 4.5% market share. MBFS also has a network of 4422 preferred outlets.
The company also acts as a supplier of buns to quick-service restaurant (QSR) chains such as McDonald’s, KFC, and Burger King pan India.
Under the Brand name, ‘English Oven’ company offers sweet and savoury bakery products like cake, pizza bases, buns, and bread. Not only this but the company also manufactures ‘Oreos’ biscuit and ‘Chocobakes’ cookies on a contract basis.
Should you buy Mrs Bectors IPO listing?
Last Week MBFS shares were trading over 64 percent premium in the grey market. They were Rs 185 higher at Rs 473 apiece over the issue price of Rs 288. These figures are enough to tell the mood among investors for this listing.
Notably, the company has done some pretty positive growth in the first two-quarters of FY21, in such a competitive industry and that’s why investors will be looking to gain from it in shorter-term possibly.
In the last 3 years, Mrs. Bectors’ gross margins stood at the highest at 44 percent, whereas key brand biscuit companies stood in the range of 35-39 percent. With the upper price band of Rs 288, the PE ratio comes at 21 of the FY21E EPS, which seems to be quite cheap in comparison to listed peers.
Manthan Mehta, Head Unlisted & Private Equity Rurash Financial Services Pvt Ltd, told Financial Express Online that “Thus, looking at the growth opportunities and expansion plans of the company, we believe that the investors should apply for this IPO both for the long term and listing gains of at least 40 percent”.
