Mrs. Bectors Food Specialities Limited IPO Note Issue Open: Dec 15 Dec 17, 2020 Price Band: Rs. 286 288 (Discount of Rs 15 for the eligible employees) *Issue Size: 18,768,750 eq shares (Fresh Issue of 1,407,639eq sh + Offer for sale of 17,361,111 eq sh) Issue Size: Rs. 536.8 540.5 cr Reservation for: QIB Upto 50% eq sh Non Institutional atleast 15% eq sh Retail atleast 35% eq sh Face Value: Rs 10 Book value: Rs 62.47 (September 30, 2020) Bid size: - 50 equity shares and in multiples thereof.
Company Overview Mrs Bector Food Specialties Ltd (MBFSL) is one of the leading companies in the premium and mid-premium biscuits segment and the premium bakery segment in North India. It manufactures and market a range of biscuits such as cookies, creams, crackers, digestives and glucose under its flagship brand Mrs. Bector's Cremica'. It also manufactures and markets bakery products in savoury and sweet categories which include breads, buns, pizza bases and cakes under the brand English Oven'. It is also one of the largest suppliers of biscuits to Canteen Stores Department supplying in 33 locations across India and an approved and listed supplier for Indian Railways. Details & Objects of the Issue: The issue of Rs 540.5 cr comprised of Rs 40.5 cr fresh issue and Rs 500 cr Offer for Sale. The company intends to incur capex from the fresh issue. Investment Rationale: a)Strong brand in biscuits as well as bakery segments b)Leading exporter of Biscuits c)Benefits started reflecting of the capex done in last three years d)Healthy Financials (a) Improving Return Ratios (b) Strong profitability and healthy revenue growth (c) Robust Balance Sheet Valuation and Recommendation: Between FY18-20, Mrs Bector Food Specialty's revenues have grown at CAGR of 5% while H1FY21's revenue grew by 18%. FY20 revenues were affected due to covid related disruptions in supply chains and shut down of large QSR and institutional clients. The company is earning steady EBITDA margins of ~12-12.5% however it has improved to 16.7% in 1HFY21 on the back of pent-up demand and reduction in other expenses....
According to Technopak Report, Mrs. Bector's Cremica' is the one of the leading biscuit brands in the premium and mid-premium segment in Punjab, Himachal Pradesh, Jammu and Kashmir and Ladakh and English Oven' is the one of the...
MBFS is one of the leading companies in the premium and mid-premium biscuits segment in North India and sells products under flagship brand Mrs Bector's Cremica'. It is among the top two Indian biscuit manufacturers in the premium and mid-premium biscuits segment in Punjab, Himachal Pradesh, Ladakh and Jammu & Kashmir. In FY20, it had a market share of 4.5% of the premium and mid premium biscuits market in North India. Its customers associate the brand Mrs Bector's Cremica' with high quality premium and mid-premium biscuits that incorporates quality, taste and...
increasing distribution. We note that the company has improved product quality over the years and has benefitted from being contract manufacturer of Oreo biscuits for Mondelez. We believe Bread and Institutional Buns business is a silver lining given strong share and the credibility it provides to...
Public issue of 18,768,750 Equity shares of Face value Rs. 10 each, (Comprising of fresh issue of 1,407,639 Employees Reservation Equity Shares* (Rs. 40.54 cr.) and Offer for Sale of Total 17,361,111 Equity Shares* (Rs. 500 cr.) by Selling Shareholder QSR Asia Pte. Ltd.)....
Mrs. Bector's Food Specialities Ltd. IPO Analyst Meet Takeaways We attended the virtual Brokers/Analyst Meet of Mrs. Bector's Food Specialities Ltd.'s (MBFSL) forthcoming initial public offering (IPO). The management was represented by Mr. Anoop Bector (MD), Mr. Ishaan Bector (WTD), Mr. Parveen Kumar Goel (CFO) and Mr. Deepak Kumar Jain...
