Mrs Bector IPO subscribed 3.72 times on Day-1 on strong retail interest

The company on Monday allotted shares worth Rs 162 cr to anchor investors Goldman Sachs India, SBI MF, Bajaj Allianz Life Insurance, among others

Mrs Bector Food Specialities’ Rs 540-crore initial public offering (IPO) was subscribed 3.72 times on Tuesday the first day of the issue. The institutional investor portion was subscribed 0.02 times, the wealthy investor portion by 1.37 times, retail investor portion by 6.8 times and the portion reserved for employees by 9.5 times.

The company on Monday allotted shares worth Rs 162 crore to anchor investors. The anchor investors include Goldman Sachs India, SBI Mutual Fund, Bajaj Allianz Life Insurance amongst others.

Mrs Bectors have priced their IPO between Rs 286-Rs 288 per share. The issue comprises of Rs 40 crore of fresh capital raise and Rs 500 crore of a secondary share sale by four existing shareholders.

At the top end, the company will have a market capitalisation of nearly Rs 1,700 crore on a post-diluted basis.

Mrs Bector will use the issue proceeds for setting up of a new production line for biscuits.

The company manufactures and markets cookies, creams, crackers, digestives and glucose under its brand ‘Mrs Bector’s Cremica’. They also manufacture and market bakery products in savoury and sweet categories under its brand ‘English Oven’. Bector Food is the largest supplier of buns in India to QSR chains such as Burger King India, Connaught Plaza restaurants, Hardcastle restaurants, and Yum! Restaurants. SBI Capital Markets, ICICI Securities and IIFL Securities are the book running lead managers to the offer.