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Mrs. Bector’s Food IPO - should you invest? what are my stategies?

 

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 ipo


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.

 


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