Mrs Bectors Food Specialities IPO premium in grey market jumps to 76%

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Mrs Bectors Food Specialities shares were available at a 76 percent premium over its IPO price, in the grey market, on its first day of bidding.

The trading premium increased significantly to Rs 220 (up 76 percent over upper IPO price band of Rs 288 per share) on December 15 from Rs 170 (59 percent higher over upper IPO price band) on December 11, the grey market data available on the website of IPO Central showed.

The initial public offering of biscuits and bakery products maker has opened for subscription on December 15 and will close on December 17, with a price band of Rs 286-288 per share.

Mrs Bectors Food Specialties IPO opens: Here are 10 key things to know

The public issue was fully subscribed on its first day of bidding itself. At the time of publishing this copy, it was subscribed 6 times as the portion set aside for retail investors witnessed subscription of 10.7 times, non-institutional investors 2.2 times and that of qualified institutional investors 41 percent.

The IPO consists of a fresh issue of Rs 40.54 crore and an offer for sale of Rs 500 crore by public shareholders - Linus, Mabel, GW Crown PTE Ltd and GW Confectionary PTE Ltd.

Mrs Bectors Food Specialities had also received a good response from anchor investors on December 14 and raised Rs 162 crore from them at Rs 288 per share.

"Mrs Bector IPO is priced lower compared to the peers on the valuation front making it a strong candidate for stellar listing. We expect the IPO to be subscribed manifold times," Keshav Lahoti, Associate Equity Analyst at Angel Broking told Moneycontrol.

Mrs Bectors Food Specialties IPO opens: Should you subscribe?

"We are positive on the future outlook for the industry as well as the company, so we have recommended to subscribe to the issue for long term as well as for listing gains," he said.

Mrs Bectors Food Specialities is one of the leading companies in the premium and mid-premium biscuits segment and the premium bakery segment in North India, with a market share of around 4.5 percent in the premium and mid-premium segments.

The company manufactures biscuits under its flagship brand 'Mrs. Bector's Cremica', and bakery products under the brand 'English Oven'.