Mrs Bectors IPO Listing Today: Mr. Bectors Food has a strong entry in the stock market. The company’s shares were listed on BSE on Thursday, December 24, with a 74 percent premium. The share price band for the IPO was Rs 288 and it was listed at Rs 501 on BSE. After the strong response received by the investors, the IPO was believed to have a bumper listing in the market. Experts and brokerage houses also advised to subscribe to the IPO for listing gains.
2020: Highest Subscribed
The price band for Mr. Bectors Food IPO was kept at Rs 286-288 per share. There was a strong response from investors in this 540 crore IPO. The IPO is the highest subscribed IPO of the year 2020 so far. The IPO was subscribed 199 times over its issue size. In view of this response, it was expected to be listed at a premium. The minimum bid lot for this IPO was 50 shares. That is, at least 14400 rupees had to be charged for this.
The retail position of the IPO was subscribed 29.28 times, while the reserve portion was 176.85 times for qualified institutional buyers and 620.86 times for non-institutional investors. IPA had a reserve of 35 per cent for retail investors, 50 per cent for qualified institutional investors and 15 per cent for non-institutional buyers. The company will expand its business through funds received from the IPO. At the same time it will also be spent on some casting cast.
The company supplies bakery products. The company named ‘English Oven’ sells bakery products and cookies under the name ‘Cremica’. ITC, Britannia Parle are the company’s main competitors in the country.
The company has 6 manufacturing facilities. Of these, 2 are in Punjab, one in Himachal Pradesh, one in Greater Noida, one in Maharashtra and one in Karnataka. From September 2019 to September 2020, the company’s profit has increased by 282 percent in one year.
Brokerage advised subscribing
According to Nirali Shah, senior research analyst at SAMCO Securities, investors can take advantage of listing gains in it. He says that Mr. Bectors Food sells a bakery product named ‘English Oven’ and cookies under the name ‘Cremica’. Both brands are popular. Both brands have a significant stake in North India. The company is also financially strong.
Brokerage house Angel Broking also suggested subscribing to the issue. The brokerage says that the domestic biscuits and bakery market is expected to grow at 9 per cent in the next few years. On the other hand, the institutional biscuits and bakery market is expected to grow at a rate of 20 percent during this period. In such a situation, Mr. Bectors will benefit further.