IPO Details
Below are key details about the IPO of the Company
- IPO Start Date – 15th Dec 2020
- IPO End Date – 17th Dec 2020
- IPO Price – INR 286 – 288
- IPO Lot Size – 50
- Minimum investment required – INR 14,400
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Business Details
Mrs Bector Food Specialities is from Food Processing Sector. The Company has two major products as mentioned below
- Biscuits
- Under the brand name of Cremica
- Different types of Biscuits offered by the Company are
- Digestive category (Health)
- Cream Category
- Cracker category
- Cookies category
- Glucose category
- Wafer category
- Breads
- Under the brand name English Oven
- Different varieties like Garlic bread, Fruit bread etc
The Company has mainly presence in international market along with India. It exports products to 64 countries around the globe. It covers mainly Africa, North America and some parts of Asia and Australia. The Company is not present in Europe so there is scope of expansion in that area.
The bread operation of the Company is divided into three parts based on geographies the manufacturing locations are situated in
- North Zone
- Noida Uttar Pradesh
- South Zone
- Bangalore Karnataka
- West Zone
- Raigad
All the manufacturing locations are situated in North India (Punjab and Himachal Pradesh) for Biscuits. The Products from the Company are mainly premium products catering the premium customer segment.
Financial Snapshot
Below are key financials of the Company for year ending 2019 (Rupee in million)
- Total Revenue – 7148
- Total Expense – 6802
- Profit before tax – 346
- Profit for year – 282
IPO Subscription Status
Below is IPO Subscription status of the Company. I will be updating this section with time.
- QIB – 176.85 times
- NII – 620.86 times
- RII – 29.33 times
- Employee – 45.46 times
- Total Subscription is 198.02 times
Below is meaning of the Key terms used above
- QIB is (Institutes or Mutual Funds like HDFC AMC etc)
- NII is (People bidding for more than 2 lakhs in IPO application)
- RII is (People bidding for less than 2 lakhs)
- Employee and Others are Reserved Quota Investors.
My Opinion
The closest company which can be compared with Mrs Bectors Food Specialities is Britannia as both of them serve the same products of Biscuits and breads. So the Company will demand same valuations as it.
The Company started out in year 1978 as small enterprise by two individuals and have since then grown as a Company. This shows the business acumen of the individuals involved in the business and gives comfort as investor.
The eatables are doing good business wise as they are not impacted by Corona in adverse way instead these companies have positive impact as consumption of biscuits and breads have increased in this period. Due to frenzy in market now the IPO may be good subscription and that may drive the listing price of it.