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Mrs. Bectors Food Specialities Ltd IPO Blog

Mrs. Bectors Food Specialities Ltd IPO Blog

Company Background

Mrs Bectors Food Specialities Ltd was founded by Mrs Rajni Bector and is promoted by Mr Anoop Bector which was incorporated in 1995, Mrs Bectors Food Specialities Ltd is one of the leading companies in the premium and mid-premium biscuits segment and the premium bakery segment in North India.

Mrs Bectors Food Specialities Ltd manufactures and markets a wide range of biscuits such as cookies, creams, crackers, digestives and glucose under the flagship brand ‘Mrs. Bector’s Cremica’. Mrs Bectors Food Specialities Ltd also manufactures and markets bakery products in savoury and sweet categories which include loaves of bread, buns, pizza bases and cakes under the brand ‘English Oven’.

Mrs Bectors Food Specialities Ltd supplies 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 31, 2020.

‘Mrs. Bector’s Cremica’ is one of the leading biscuit brands in the premium and mid-premium segment in Punjab, Himachal Pradesh, Jammu and Kashmir and Ladakh and ‘English Oven’ is one of the largest selling brands in the premium bakery segment in Delhi NCR, Mumbai and Bengaluru.

We are the largest supplier of buns in India to reputed QSR chains such as Burger King India Limited, Connaught Plaza Restaurants Private Limited, Hardcastle Restaurants Private Limited, and Yum! Restaurants (India) Private Limited.

Mrs Bectors products are manufactured in-house at six manufacturing facilities located in Phillaur and Rajpura (Punjab), Tahliwal (Himachal Pradesh), Greater Noida (Uttar Pradesh), Khopoli (Maharashtra) and Bengaluru (Karnataka), which enables them to have effective control over the manufacturing process and to ensure consistent quality of our products.

Manufacturing facilities are strategically located in proximity to our target markets, which minimizes freight and logistics related to time and expenses.

Basic IPO details

IPO Opening Date 15-Dec-20
IPO Closing Date 17-Dec-20
Face Value ₹10 per equity share
IPO Price ₹286 to ₹288 per equity share
Market Lot 50 Shares
Issue Size Aggregating up to ₹540.54 Cr
Fresh Issue Aggregating up to ₹40.54 Cr
Offer for Sale Aggregating up to ₹500.00 Cr
Retail Allocation 35%
Listing At BSE, NSE
Tentative Listing Date 28-Dec-20

 

Objects of the Issue

The company will not receive any proceeds from OFS while the proceeds from the fresh issue will be utilized

  • To finance the cost of Rajpura Expansion Project.
  • To meet general corporate purposes.

 

Financial Performance (in INR crore)

FY2018 FY2019 FY2020 H1 FY2021
Revenue 696 786 765 439
Expenses 643 735 726 387
Net income 36 33 30 38
Net margin (%) 5.2 4.2 3.9 8.8

Outlook

Seeing the attraction in Burger King IPO and the outlook for QSR we expect that Mrs Bectors Food Specialities Ltd will be another attractive IPO for the investors. The fundamentals of the company don’t look good as of now as they have seen very slow growth in the last 3 years also debt have increased form 35 cr in 2017 to 85 cr in 2020.

The company is well-positioned in North India and has an opportunity to expand in the South and other parts of India. The company does not have any contract with the institutional customer which is the key risk for the company also bakery business has low entry barrier as it can be started with low investment.

However, the demand from the QSR chains will be a key beneficiary for the company. We recommend a SUBSCRIBE rating to the IPO only for the aggressive investors for listing gain and short term.

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