Ms. Bectors IPO was subscribed 197 times on the last day of bidding; gray market premium soars even higher

Ms Bectors Food Specialties’ IPO was underwritten 197.36 times by investors at the time of Thursday’s closing bell. The three-day bidding process came to an end and all categories of investors oversubscribed their share of the issue. Non-institutional investors showed the most interest in Ms. Bectors, subscribing 621 times. With this, Mrs Bectors has surpassed the subscription rate for Burger King, the youngest stock to debut on Dalal Street. Burger King, one of the most profitable listings on the exchanges this year, was subscribed 156 times by investors.

Qualified Institutional Buyers (QIBs) have bid for their share 175 times. Retail investors bid 28 times and company employees oversubscribed 43.77 times. Non-institutional investors were the most aggressive bidders for the issue. Mrs Bectors’ Rs 540 crore issue offers shares of 1.32 crore, but offers for 250 crore have so far been received.

In the unlisted space, Mrs Bectors Food shares have gained more and are trading at an 80% premium. “Although it is volatile, but Ms Bectors Food is trading at a gray market premium of Rs 225-230 on the gray market,” Manan Doshi, co-founder of UnlistedArena.com, a stock trading company, told Financial Express Online. unlisted and before the IPO.

Analysts had expected high underwriting figures for Bectors after the success of Burger King’s IPO earlier this week. “The results of the company (Ms. Bectors) were better than the industry in the first half of fiscal year 2021. Companies like Britannia Industries, Nestlé India, Prataap Snacks and DFM Foods are trading at PE 50.2, 85 , 6, 57.1 and 97.6 respectively, ”said Keshav Lahoti, associate analyst for shares at Angel Broking. The IPO, priced at Rs 286-288 per share, is at a final PE of 27.9. “Given the significant discount compared to its listed peers, there is comfort in valuation. We are positive about the long-term growth prospects for the industry and the company and therefore recommend “Subscribing” to the issue both long-term and for trading gains, ”he added.

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. Investors are now teaming up with Ms. Bectors in replicating Burger King’s earnings. The QSR industry’s grand debut on the exchanges with a 92% premium and helped investors achieve 3x higher returns in the first days of trading.