Mrs Bectors Food Specialities to debut on December 24: Will it see a bumper listing?

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Mrs Bectors Food Specialities, one of the leading companies in the premium and mid-premium biscuits segment and the premium bakery segment in North India, is expected to start the first trade with a bumper premium around 50-70 percent over its issue price of Rs 288 per share, experts feel.

The company will list its equity shares on December 24, a day before its scheduled date available in the prospectus which was around December 28.

Considering the overwhelming response to the public issue last week, leading brands in biscuits and bakery businesses in North India, experienced promoter and management team, and strong institutional bakery business and biscuits exports shares, the listing premium seems to be justified, experts feel.

The Rs 540.54-crore public issue was subscribed 198.02 times during December 15-17, the highest subscription seen by IPO in 2020.

"We expect Bectors Food to list at 50-70 percent premium above the issue price," said Astha Jain, Senior Research Analyst at Hem Securities who is positive on the long-term prospects of the company as it is one of the leading brands in biscuits and bakery businesses in North India and has established its presence in retail and institutional bakery business.

Prashanth Tapse, AVP Research at Mehta Equities told Moneycontrol that considering its stellar subscription levels, eye-catching IPO valuation compared to listed peers, and strong future growth prospects in packaged biscuits, there is a high possibility of listing gains around 55-60 percent premium to issue price.

"A premium listing seems to be justified, assuming branded business efficiency which is expected to further improve going forward," he said.

But given the volatile market sentiments it would be interesting to watch whether it can withstand the premium and rally post listing as well, he feels.

Mrs Bectors Food IPO allotment finalised: Here is how to check

Shares were traded at a premium of Rs 160-190 per share in the grey market against the issue price of Rs 288 per share, as per the data available on the websites of IPO Central, IPO Watch, and IPO Guru.

Keshav Lahoti, Associate Equity Analyst at Angel Broking also expects a stellar listing for Mrs Bectors Food on Thursday.

Mrs Bectors Food raised Rs 40.54 crore via fresh issue and Rs 500 crore through the offer for sale by existing shareholders.

It will utilise fresh issue proceeds for financing the project cost towards expansion of the Rajpura manufacturing facility by establishing a new production line for biscuits.

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

It supplied its products to retail consumers in 26 states within India, as well as to reputed institutional customers with pan-India presence and to 64 countries across six continents during the financial year ended March 2020.

Mrs Bectors Food is the largest supplier of buns in India to reputed QSR chains such as Burger King India, Connaught Plaza Restaurants, Hardcastle Restaurants, and Yum! Restaurants (India).