Ms Bector’s Gray Market Premium Rises to 70% Amid IPO; Will you repeat Burger King’s listing gains?

Shares of Mrs Bectors Food Specialties were trading strong on the gray market on Wednesday. The initial public offering of Rs 540 crore is witnessing a strong response from investors, especially retail investors and employees, who have subscribed 12.05 times and 11.53 times, respectively, so far on the second day of the process. Bidding. Today, Mrs Bectors Food Specialties shares were trading at Rs 488 each, an increase of Rs 200 or 70 percent from the issue price of Rs 288 each.

Mrs Bectors Food is the largest bun supplier in India for Quick Service Restaurant (QSR) chains such as Burger King, McDonald’s, KFC, Carl’s Jr, Pizza Hut and Dominos Pizza. It also sells a variety of its bakery and frozen products to cloud kitchens like Rebel Foods and multiplex like PVR. The company’s cookie products are sold under the flagship brand ‘Mrs Bector’s Cremica’, and premium bakery products under ‘English Oven’.

Will Mrs. Bectors Food reproduce the earnings from Burger King’s stock?

This week Burger King India’s stock traded on the exchanges at a 92% premium to its issue price of Rs 60. Since the debut on the stock market, Burger King India shares are up 73%, however, since the IPO price, it has skyrocketed. a whopping 232 percent. Analysts say that even though Ms Bectors Food is well known for its strong distribution network and strong business, especially in North India, its finances, especially earnings and ROE, have tended to lowers it.

“However, the current IPO market in India appears to be in a state of euphoria as the major indices continue to climb to new highs,” Abhijeet Ramachandran, Independent Analyst / Co-founder and Trainer of Tips2Trade, told Financial Express Online. He further said that it would be difficult for Ms Bectors to replicate the success of Burger King’s initial public offering, but still, it should offer attractive returns in excess of 20-30% at the time of listing.

After Burger King’s stellar IPO listing, there may also be a contagion effect on Mrs Bectors Food Specialties IPO. “Also the market in general, as well as the consumer goods sector, is positive, which is working as the icing on the cake. These factors should work well for the company and listed investors, as well as in the short term, ”Abhay Doshi, an independent distributor of unlisted shares based in Gujarat, told Financial Express Online. He also said that Ms. Bector Foods can trade on similar lines to Burger King, giving a 75-85 percent profit on the listing. “However, in the long term, competition from organized and unorganized sectors can weigh heavily. Therefore, it would be wise to keep track of upcoming performance to make long-term decisions, ”added Abhay Doshi.

Who subscribed how much?

The issue was fully subscribed within two hours of Wednesday’s first bidding day. Retail investors have subscribed 12.05 times, employees 11.53 times, non-institutional investors 3.51 and qualified institutional investors 41%, so far on the second day. The number has been subscribed almost 7 times today. Investors can subscribe to the Mrs Bectors Food Specialties issue at a price band of Rs 286-288 per share.