At 74% premium: Stellar listing for Mrs Bectors Food

Shares of Mrs Bectors Food Specialties made a stellar debut on the bourses on Thursday with listing day gains of 105.73%. The stock opened at Rs 500 on the NSE, 73.61% higher than its issue price of Rs 288, and hit the upper circuit at Rs 600 before closing the trading session at Rs 592.5 apiece. This is the third best listing day gain after Burger King India and Happiest Minds Technologies, which saw gains of 125% and 123.5%, respectively.

The IPO of Mrs Bectors Food Specialties was for an amount of Rs 540 crore and was subscribed 198.02 times. Experts believe the IPO listing gains can be attributed to the all-time highs in the market and strong retail participation. Hemang Jani, head – equity strategy, broking and distribution, Motilal Oswal Financial Services, said the listing gains could be attributed to the euphoria in the market and retail frenzy.

The red herring prospectus of Mrs Bectors Food Specialties showed net profits for the first half of the financial year 2021 (till September 2020) of Rs 38.88 crore compared with a net profit of Rs 10.17 crore for the first half of the previous financial year 2020 period ended September. The revenue from operations for the company for the first half of financial year 2021 period ended September stood at Rs 430.99 crore.

Mrs Bector’s Cremica is part of a leading biscuit brand in the premium and mid-premium segment in Punjab, Himachal Pradesh, Jammu and Kashmir and Ladakh. Its premium bakery label English Oven is the one of the largest selling brands in the premium bakery segment in Delhi-NCR, Mumbai and Bengaluru. The company is the largest supplier of buns in India to reputed QSR chains such as Burger King, Connaught Plaza Restaurants, Hardcastle Restaurants and Yum! Restaurants.