Mrs Bectors Food Specialties - ₹546 Crore IPO Review and Analysis in Detail

 

Mrs Bectors Food Specialties - ₹546 Crore  IPO Review and Analysis in Detail

 

A premium biscuit making company namely Mrs Bector’s Food Specialties Ltd, is all set to raise funds of about Rupees 540 crore ($73 million) by Initial Public Offering. The Company was started by a married lady Mrs. Rajni Bector; she was fond of making ice creams in her earlier days and in an exhibition her stall was placed beside Kwality walls and the surprising thing in that exhibition was that people started coming to her stall rather than kwality walls stall. In 1980 she labeled her product as Cremica (Cream-Ka), because cream is used in her most of the products. In addition to this in 1995, they started supplying the buns to McDonals and still they are doing it for Connaught Plaza Restaaurants Pvt Ltd. and Hardcastle Restaurants Pvt Ltd.

Industry Analysis: The biscuits and bakery retails market is valued at Rs 450 billion and it is expected to grow at a CAGR of ~9%, over the next five years evaluated by experts. On the other hand in India Per Capita Consumption is 2.5kg per year and in UK it is 13.6kg per year.

Market Share: The market share of Cremica is about only 1% and Britannia on the other hand acquired about 28% percent market share in branded biscuit market in the financial year 2020 and same for the bakery industry Cremica owned English Oven which has about 5% market share in bakery sector.

Products: 37% of the revenue generates from domestic supply of biscuits with over 750 distributors and 458k retailers in India. 17% revenue generates from Bread & Bakery products with over 191 distributors and 14K retailers. 22% of revenue, this company generates from exporting its products to over 64 countries.

Manufacturing Plants: Company has its biscuits plants in Phillaur & Rajpura (Punjab), Tahiwal (Himachal Pradesh), and its bakery plants are situated at Greater Noida (UP), Khopoli (Maharashtra) and Bengaluru (Karnataka).

IPO Opening Date	Dec 15, 2020
IPO Closing Date	Dec 17, 2020
Issue Type	Book Built Issue IPO
Face Value	Rs 10 Per equity share
IPO Price	Rs 286 to Rs 288 per equity share
Market Lot	50 Shares
Min Order Quantity	50 Shares
Listing At	BSE, NSE