The award status of Ms. Bectors Food’s 540 million rupee initial public offering (IPO) is likely to be announced on Tuesday. The issuance, which ran between December 15 and December 17, was the most successful IPO of 2020 so far, having received 198 times the subscription as investors expect solid price gains following the success of previous IPOs. .
Mrs Bectors’ initial public offering overcame the problems of Mazagon Dock Shipbuilders and Burger King which subscribed 157 times each.
The IPO generated offers worth more than Rs 40 billion. The High Net Worth Individual (HNI) portion was subscribed 620 times, the Qualified Institutional Buyer (QIB) portion 177 times, and the Retail category witnessed nearly 30 times the subscription. The company’s shares are expected to trade on December 28.
The award status of Mrs Bectors IPO can be checked on the Link Intime or BSE website.
An applicant can check the status of their assignment on the website of Link Inktime India (link here), who is the registrar of the problem using only their PAN details and selecting the “Company Name” from the drop down menu and clicking on look for.
Whereas, an applicant who tries to verify the status of the assignment on the EEB website (link here), can select the type of issue as “Equity”, select the “Issue Name”, write their “Number of request “, followed by” Permanent Account Number (PAN number) “and clicking the” Search “button.
Priced at Rs 286-288 per share, the initial public offering comprised the new issue of shares worth Rs 40.54 crore and the Offer for Sale (OFS) of Rs 500 crore by existing shareholders. ICICI Securities, IIFL Holdings and SBI Capital Markets were the main managers of the issue.
The company is one of the leading companies in premium and mid-premium biscuit segment and premium bakery segment in North India. Analysts expect the cookie and bakery market to grow 9 percent in the coming years due to urbanization and rising disposable income. Meanwhile, the Indian institutional bakery industry is expected to grow by 20 percent due to the increasing market share of QSR chains. READ MORE
Most brokers had given the issue a ‘underwriting’ rating as they see comfort in valuations and the industry’s growth prospects.
Mrs Bectors companies such as Britannia Industries, Nestlé India, Prataap Snacks and DFM Foods are trading at PE behind 50.2, 85.6, 57.1 and 97.6 respectively. On the other hand, the company has a PE price of 27.9, Angel Broking said in a note.
“Given the significant discount compared to publicly traded pairs, we are comforted by the valuation. We are positive about the long-term growth prospects for the industry and the company and therefore recommend ‘Subscribe’ to the issue both to list the earnings, “he added.
Geojit Financial Services also sees long-term growth prospects for the company.
“In the upper price band of Rs 288, Mrs Bectors is available at a P / E of 22x in FY21E EPS (annualized), which seems attractive given its higher profitability compared to its peers of similar size. Considering its prospects For future growth in packaged biscuits and the QSR segment, we recommend a rating of “Underwriting” with a long-term outlook, “it said in an IPO note.
However, Prabhudas Lilladher believes that the strong margin expansion published by the company in the first half appears unsustainable, although the recovery in institutional business will provide reasonable profit growth in fiscal 22.
“We believe that Ms. Bectors is well positioned to grow in the bread and rolls business, but needs to scale in the cookie business, given a smaller size than Britannia, Parle and Sunfeast. The stock is offered at around 28xFY21 in compared to 48xFY21 EPS for Britannia, which offers a long-term requalification opportunity if it expands the cookie business, “he said in a report.
At the higher end, the company will have a market capitalization of almost Rs 1,700 crore on a post-diluted basis. Ms. Bector will use the proceeds from the broadcast to establish a new cookie production line.
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