Mrs.
Bector’s Food Specialities Limited IPO Details
|
IPO Date |
December 15, 2020, to December 17, 2020 |
|
Issue Type |
Book Built Issue IPO |
|
Issue Size |
Equity Shares of Rs.10 totaling up to Rs.540.54 Crore |
|
Fresh Issue |
Equity Shares of Rs.10 totaling up to Rs.40.54 Crore |
|
Offer for Sale |
Equity Shares of Rs.10 totaling up to Rs.500 Crore |
|
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 |
Mrs.
Bector’s Food Specialities Limited IPO Tentative Timetable
|
Bid/Offer Launch date |
December 15, 2020 |
|
Bid/Offer Last date |
December 17, 2020 |
|
Basis of Allotment finalization date |
December 22, 2020 |
|
Initiation of Refunds |
December 23, 2020 |
|
Credit of Shares to Demat Account |
December 24, 2020 |
|
IPO Shares Listing Date |
December 28, 2020 |
Objects
of the Offer
Mrs.
Bector’s Food Specialities Limited proposes to utilize the net proceeds from
the fresh issue for financing the project cost towards the expansion of the
Rajpura Manufacturing Facility by establishing a new production line for
biscuits (“Rajpura Expansion Project”).
About
the Company
Mrs.
Bector’s Food Specialities Limited is one of the leading names in the premium
and mid-premium biscuits segment and the premium bakery segment in North India.
The company was founded by Mrs. Rajni Bector using her original recipes. Under
its flagship brand ‘Mrs. Bector’s Cremica’, the company manufactures and
markets a wide range of biscuits like cookies, creams, crackers, digestives,
and glucose. It also manufactures and markets bakery products in the
savory and sweet categories including breads, buns, pizza bases, and cakes
under its brand ‘English Oven’. The company supplies its products to
retail consumers across India and also to 64 countries across six continents.
In
India, Mrs. Bector’s is the largest supplier of buns to reputed QSR brands like
Burger King India Limited, Connaught Plaza Restaurants Private Limited,
Hardcastle Restaurants Private Limited, and Yum! Restaurants (India) Private
Limited. The company has six manufacturing facilities located at Phillaur and
Rajpura in Punjab, Tahliwal (Himachal Pradesh), Greater Noida (Uttar Pradesh),
Khopoli (Maharashtra), and Bengaluru (Karnataka).
1.
Strengths of Mrs. Bector’s Food Specialities Limited
·
Mrs.
Bector’s Food Specialities Limited is one of the leading brands in biscuits and
bakery businesses in North India with an ability to establish brands
·
The
company is a leading exporter of biscuits from India with approximately 12%
share of the Indian biscuit export market in the calendar year 2019.
·
Mrs.
Bector’s has an established presence in the retail and institutional bakery
business in India and one of the largest selling premium bakery brands in New
Delhi (NCR), Mumbai, and Bengaluru
·
The
company has modern and automated production processes with a focus on quality
control. Its production facilities are strategically located close to its
target markets minimizing freight and logistics-related expenses and time.
·
It
has an extensive sales and distribution network allowing it to reach a wide
range of customers and effective penetration of its products and campaigns
·
An
experienced senior management team has helped the company develop strong
relationships with its vendors for the procurement of raw materials,
institutional customers, dealers, and distributors.
2.
Risk Factors
·
The
continuing effect of the COVID-19 pandemic on the company’s business and
operations is highly uncertain and cannot be predicted.
·
If
the company fails to anticipate, respond to, and meet the tastes, preferences,
or consistent quality requirements of its consumers or accurately predict and
successfully adapt to changes in market demand or consumer preference, then
there could be a drop in the demand for its products, affect its brand loyalty,
and impact its sales.
·
The
biscuits and bakery products industry is inherently capital intensive and
requires significant expenditure. Mrs. Bector’s has incurred indebtedness may
incur additional debt in the future, which may expose it to interest rate
fluctuations, and restrict its operational flexibility in certain ways.
·
The
company currently avails of benefits under certain export promotion schemes.
Any failure in meeting the obligations under such schemes may adversely affect
its business operations and its financial condition.
·
Since
the company is into exports, it is exposed to foreign currency exchange rate
fluctuations, which may impact its results of operations, cash flows, and cause
its financial results to fluctuate.
·
A
disruption or shutdown of its manufacturing operations or under-utilization of
its manufacturing facilities or its failure to commission its new facilities
successfully or a shortage or non-availability of fuel, electricity, or water
could have an adverse effect on its business, financial condition, and results
of operations.
·
The
company does not have any long-term contracts with its QSR customers and any
disruption in its business operations with its QSR customers will adversely
affect its business, financial condition, and results of operations.
·
If
the company fails to manage its inventory and foresee accurate demand for its
products for a future period, then it may experience an adverse impact on its
reputation, business, results of operation, and financial performance.
·
Certain
properties occupied by Mrs. Bector’s are not owned by the company but are
leased. In the event that the company loses or is unable to renew such
leasehold rights, its business, financial condition, and results of operations
may be adversely affected.
·
The
company is subject to labor laws and other industry standards and its
operations could be adversely affected by strikes, work stoppages, or an
increase in wage demands.
·
Any
contamination or deterioration of the company’s products could result in legal
liability, damage its reputation, and adversely affect its business prospects
and consequently its financial performance.
·
Inadequate
or interrupted supply, seasonality, price fluctuation, and adulteration of the
raw materials could adversely affect its business, results of operations, and
financial condition.
·
If
the company fails to comply with food safety laws, environmental laws, and
other applicable regulations in relation to its manufacturing facilities, then
its business, financial condition, and results of operations may get impacted.
·
If
the company experiences insufficient cash flows, then its working capital
requirements would not be met. This may have an adverse effect on its business,
financial condition, and results of operations.
·
The
company largely relies on third-party transportation providers for both the
procurement of raw material and the distribution of products. Any failure by
any of its transportation providers to deliver the raw material and/or products
on time, or in good condition, or at all, may adversely affect its business,
financial condition, and results of operations
Here
is a quick look at some important information about Mrs. Bector’s Food
Specialities Limited:
3.
Overview of Mrs. Bector’s Food Specialities Limited’s Financials
|
30-Sep-20 |
30-Sep-19 |
31-Mar-20 |
31-Mar-19 |
31-Mar-18 |
|
|
Total Assets |
608.73 |
560.56 |
565.72 |
577.04 |
511.06 |
|
Total Income |
438.56 |
366.21 |
764.98 |
786.03 |
695.76 |
|
Total Expenses |
386.50 |
354.20 |
725.83 |
735.44 |
642.93 |
|
Profit After Tax |
38.88 |
10.17 |
30.40 |
33.15 |
35.89 |
All
amounts in INR Crore
4.
Promoters of Mrs. Bector’s Food Specialities Limited IPO
I.
Mr.
Anoop Bector
FAQs
1. What is Mrs. Bector’s IPO?
Mrs. Bector’s IPO is a Main Board IPO
for the issue of equity shares having the face value of Rs.10 totaling up to
Rs.540.54 crores. The registrar for the IPO is Link Intime India Private
Limited and the shares will be listed on BSE and NSE.
2. What are the open and close dates of
Mrs. Bector’s IPO?
Mrs. Bector’s Food Specialities Limited
IPO opens on December 15, 2020, and closes on December 17, 2020.
3. What are the lot size and minimum
order quantity of Mrs. Bector’s IPO?
The lot size of Mrs. Bector’s IPO is 50
shares and the minimum order quantity is 50 shares.
4. When is the allotment of Mrs.
Bector’s IPO?
The Basis of Allotment will be
finalized on December 22, 2020, and the allotted shares will be credited to the
investor’s demat accounts by December 24, 2020.
5. What is Mrs. Bector’s IPO listing
date?
The listing date of Mrs. Bector’s IPO
is yet to be announced. However, the tentative date is December 28, 2020.
Before you invest, ensure
that you read through the company’s financials and the Red Herring Prospectus
(RHP) carefully.