Essential guide on subscribing to Mrs. Bector’s Food Specialities IPO
By: Aradhana Gotur
Tags: Mrs Bectors Ipo, Mrs Bectors, Stocks, Indian Ipos, IPO

Despite receiving SEBI’s nod to go public in 2018, Ludhiana-based buns and biscuit maker Mrs. Bector’s deferred its IPO due to unfavourable market conditions. After a failed first attempt, Mrs. Bector’s is back with its second attempt. Here’s everything you need to know before subscribing to the issue.

About Mrs. Bector’s Food Specialities Ltd (MBFS)

Incorporated in 1995 by Mrs Rajni Bector, Mrs. Bector’s Food Specialities is a leading company in the premium bakery and premium and mid-premium biscuits segments in North India boasting a 4.5% market share.

Products of Mrs. Bector’s

Mrs. Bector’s is involved in the manufacturing and marketing of a range of biscuits and bakery products. All of its products are manufactured in 6 in-house units located across 5 cities. Here’s a glimpse of Mrs. Bector’s’ product portfolio:

Biscuit products

Mrs. Bector’s manufactures and markets its biscuit products under the flagship brand ‘Mrs. Bector’s Cremica’; these include:

Creams

Cookies

Crackers

Digestives

Glucose

Bakery products

Mrs. Bector’s offers 152 sweet and savoury bakery products under the brand ‘English Oven’, which include:

Breads

Buns

Pizza bases

Cakes

Kulcha

Mrs. Bector’s also manufactures ‘Chocobakes’ cookies and ‘Oreo’ biscuits on a contract basis for Mondelez India Foods Private Limited. Moreover, capitalising on food trends, Mrs. Bector’s Food Specialities has also launched multigrain bread and sub breads for DIY sandwiches.

Clients of Mrs. Bector’s

Mrs. Bector’s serves both domestic and international markets. In the domestic markets, the company has retail clients across 26 states and institutional customers pan India. Outside India, Mrs. Bector’s caters to clients in 64 countries across 6 continents. Mrs. Bector’s also exports biscuits under its own brand and third-party private labels to well-known retail chains and distributors in over 64 countries. Its biscuits export market has a ~12% market share.

Mrs. Bector’s is one of the largest suppliers of buns to leading Quick Service Restaurant chains in India. These include Burger King India Limited, McDonald’s, Hardcastle Restaurants Private Limited, KFC, Connaught Plaza Restaurants Private Limited, and Yum! Restaurants (India) Private Limited. That apart, the bread maker also caters its bakery and frozen products to cloud kitchens and multiplexes. Mrs. Bector’s is also one of the largest suppliers of biscuits to Canteen Stores Department of Government of India (CSD) and an approved and listed supplier for Indian Railways in North India.

Competitors of Mrs. Bector’s Food Specialities

In the biscuits market, Mrs. Bector’s competes with domestic and multinational players in India such as Parle Biscuits, Britannia Industries, ITC, Anmol Industries, and Surya Agro Food. In the bakery market, Mrs. Bector’s competitors include Britannia Industries, Modern Food Industries (India), Harvest Gold Foods India, and Bonn Nutrients.

Market share of brands in the biscuit market

Source: Bloomberg quint

About Mrs. Bector’s IPO

Mrs. Bector’s Food Specialities IPO comprises of:

a. A fresh issue of equity shares worth Rs 40.5 cr

b. An offer for sale of Rs 500 cr by its existing shareholders GW Confectionary PTE. Ltd., Linus Pvt Ltd, GW Confectionary PTE. Ltd., GW Crown PTE. Ltd and Mabel Pvt Ltd.

a. A fresh issue of equity shares worth Rs 40.5 cr b. An offer for sale of Rs 500 cr by its existing shareholders GW Confectionary PTE. Ltd., Linus Pvt Ltd, GW Confectionary PTE. Ltd., GW Crown PTE. Ltd and Mabel Pvt Ltd. The price band of the issue is Rs 286 to 288 per share. The issue, whose bid lot size is 50 shares, opens today and closes on 17th Dec 2020

While 35% of the issue is reserved for retail investors, 50% is earmarked for qualified institutional buyers and 15% for non-institutional buyers. Retail-individual investors can apply for up to 13 lots

Shares aggregating up to Rs 50 lakh are earmarked under the Employee Reservation Portion, which offers eligible employees a discount of Rs 15 per share

Shares will be allotted on 22nd Dec 2020 and are likely to be listed both the BSE and NSE on 28th Dec 2020

Objectives of Mrs. Bector’s IPO

By going public, Mrs. Bector’s looks to:

Enhance its visibility and allow an exit route to its existing shareholders

Fund the expansion of Rajpura facility to establish a new production line for biscuits (so far, the company has invested Rs 258.5 cr between FY 2018 to Sep 2020 towards capacity expansion)

Fund the expansion of Rajpura facility to establish a new production line for biscuits (so far, the company has invested Rs 258.5 cr between FY 2018 to Sep 2020 towards capacity expansion) General corporate purposes

Registrar and lead managers of the IPO

Link Intime India Private Limited is the registrar of the IPO and SBI Capital Markets, ICICI Securities, and IIFL Securities are the Book Running Lead Managers.

Continue to read more on Mrs. Bector’s IPO, the bread makers strengths, risks, and financials here.