Mrs Bectors Food Specialities IPO

Mrs Bectors Food Specialities IPO will open between Dec 15, 2020 to Dec 17, 2020. The company will raise ₹540.54 crores with a fresh issue of ₹40.54 crores and an offer for sale of ₹500 crores with a price band of  ₹ 286 to ₹ 288 per equity share.

Company Overview 

Mrs Bectors Food Specialities was incorporated in 1995 by Mrs Rajni Bector. Mr Anoop Bector is the promoter and the Managing Director of the company who has industry experience over 25 years.

‘Cremica’ is one of the leading biscuit brands in the premium and mid-premium segment in North Indian states like Punjab, Himachal Pradesh, Jammu & Kashmir, and Ladakh. ‘English Oven’ is the largest selling brands in the premium bakery segment in Delhi NCR, Mumbai, and Bengaluru. It manufactures and markets biscuits such as cookies, creams, crackers, and digestives, and bakery products in savoury and sweet categories, including bread, buns, pizza bases, and cakes.

It supplies its products to retail consumers in 26 states within India and reputed institutional customers with a pan-India presence and 64 countries across six continents during FY 20.  They supply buns in India to reputed QSR chains such as Burger King India Ltd, Connaught Plaza Restaurants Private Limited, Hardcastle Restaurants Private Limited, and Yum! Restaurants (India) Private Limited.

It is the largest supplier of biscuits to Canteen Stores Department of Government of India and an approved and listed supplier of Indian Railways with a strong presence in North India.

Company’s Strengths

• One of the leading brands in biscuits and bakery businesses in North India
• One of the leading exporter of biscuits
• Established presence in the retail and institutional bakery business
• Modern and automated production process with a focus on quality control
• Widespread and established sales and distribution network
• Experienced promoter and management team

Objectives of the Issue

• Financing the project cost towards the expansion of the Rajpura Manufacturing Facility by establishing a new production line for biscuits.
• To allow the promotors to sell their equity shares held by them aggregating up to ₹ 500 crore.
• To achieve the benefit of listing their equity shares on the stock exchange.

Financials of Mrs Bectors Food Specialists

The revenue from operations has grown by a CAGR of 4.79 % from FY18 to FY20 and has grown by 18.20 % from HY19 to HY20. The EBITDA has grown by a CAGR of 4.20% from FY18 to FY20 and has grown by 84.94% from HY19 to HY20. The net profit has fallen by a negative CAGR of 7.96% during FY18 and FY20 while it has grown by 282.18% from HY19 to HY20.

Comparison with Peers

The market size of the biscuit industry in India is Rs 38,000 crore. Mrs Bectors’ Cremica has 1% market share in this industry. Britannia Industries Ltd has the largest market share of 28% followed by Parle with 27% market share and ITC Ltd with 11% market share. The market share is very less as compared to its peers.

In the bread segment, English Oven has 6% market share, Britannia holds the largest market share of 22% followed by Bonn with 13% market share and Modern Foods with 16% market share. 

Mrs Bectors Food Specialities IPO Issue Details

Mrs Bectors Food Specialities Bid Details

Mrs Bectors Food Specialities IPO Lot Size and Price for RII

Source: Mrs Bectors Food Specialists Ltd. RHP

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