Mrs Bectors Food Specialities is off to a great start — $73 million IPO was subscribed 3 times on day one

• The ₹540 crore (about $73 million) share sale of Mrs Bectors Food Specialities was subscribed 2.98 times on the first day of bidding on Tuesday.
• This is the second initial public offer this month to have received an oversubscription in the first few hours itself – the first one being Burger King India.
• The IPO received bids for 2.94 crore equity shares against the offered size of 1.32 crore shares, according to data from the stock-exchanges.
• Check out the latest news and updates on Business Insider.

The initial public offer of Mrs Bectors Food Specialities is off to a flying start. The ₹540 crore (about $73 million) share sale was subscribed 2.98 times on the first day of bidding on Tuesday (November 15).

This is the second initial public offer this month to have received an oversubscription in the first few hours itself – the first one being Burger King India.


The Mrs Bectors IPO received bids for 2.94 crore equity shares against the offered size of 1.32 crore shares, according to data from the stock-exchanges.

Mrs Bectors Food Specialities IPO	Qualified Institutional Buyer	Non-institutional Investor	Retail Individual Investor	Employee	Total
Offer size	3,776,502	2,832,378	6,608,881	18,450	13,236,211
No. of times issue subscribed	0.00x	0.84x	5.60x	2.69x	2.98x

The qualified institutional buyer was the least subscribed portion as it usually receives bids on the closing day. Whereas, the individual retail investor was the most subscribed portion.

Ahead of the IPO, the spirits are up for the owners, the analysts as well as the grey market where the premiums are 70% over the issue price band of ₹286-288 per share. And, nearly all the top brokerages have recommended to ‘subscribe’ to the issue citing various factors from strong valuation to robust business growth.

Brokerage	Recommendation
Prabhudas Lilladher	Subscribe
Angel Broking	Subscribe
Ashika Research	Subscribe
Axis Capital	Not Rated
Geojit Financials	Subscribe

The company had also raised ₹162 crore from anchor investors ahead of its IPO. The marquee investors include HDFC Life Insurance, Goldman Sachs India, Franklin India Smaller Companies Fund and SBI Debt Hybrid Fund, among others.

Mrs Bectors Food manufactures and markets a range of products such as biscuits, breads and buns. It markets a wide variety of biscuits and breads under the flagship brand 'Mrs Bector's Cremica' and the 'English Oven'.

The company plans to use the IPO proceeds for financing the project cost towards its Rajpura expansion project and establishing a new production line for biscuits.

SEE ALSO: INTERVIEW: Home recipes that are set for a $73 million IPO⁠— Mrs Bector’s Food is no cookie cutter

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