Mrs. Bectors Food
Mainboard₹541 Cr issue
+73.96%
Listing gain over issue price
Issue size
₹541 Cr
1 lot at cut-off
₹14,400
Lot size
50shares
Open
15 Dec 2020
Close
17 Dec 2020
Allotment
22 Dec 2020
Listing
24 Dec 2020
Listing performance
Issue price
₹288
Listed at
₹501
Listing-day close
₹595.55
Latest price
—
Listing gain
+73.96%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 15 Dec 2020 – 17 Dec 2020
- Listing date
- 24 Dec 2020
- Face value
- ₹10 per share
- Issue price
- ₹288 per share
- Lot size
- 50 shares
- Total issue size
- ₹541 Cr
- Promoter holding
- 52.45% → 51.00% pre-issue → post-issue
- ISIN
- INE495P01012
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- ICICI Securities Ltd.
- Registered office
- Theing Road,, Phillaur,, Punjab
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 56,25,415 | — | — |
Application size
Minimum 50 shares per lot, in multiples, at ₹288
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 50 | ₹14,400 |
| Retail (max) | 13 | 650 | ₹1,87,200 |
| S-HNI (min) | 14 | 700 | ₹2,01,600 |
| S-HNI (max) | 69 | 3,450 | ₹9,93,600 |
| B-HNI (min) | 70 | 3,500 | ₹10,08,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
56,25,415
Anchor portion
₹162 Cr
at ₹288 per share
Valuation and performance
Valuation at offer price
₹288 per share
| Metric | Pre-issue | Post-issue |
|---|
About Mrs. Bectors Food
Mrs. Bectors Food Specialities Limited, incorporated in 1995 and renamed in 1999, is one of the leading companies in the premium and mid-premium biscuits segment and the premium bakery segment in North India. The company manufactures and markets a range of biscuits including cookies, creams, crackers and digestives under the flagship brand 'Mrs. Bector's Cremica'. It also manufactures and markets bakery products in savoury and sweet categories including breads, buns, pizza bases and cakes under the brand 'English Oven'. The company operates six manufacturing facilities located in Phillaur and Rajpura (Punjab), Tahliwal (Himachal Pradesh), Greater Noida (Uttar Pradesh), Khopoli (Maharashtra) and Bengaluru (Karnataka). Following a scheme of amalgamation and arrangement approved by the High Court of Punjab and Haryana in 2014, the company consolidated its biscuits and bakery businesses after a family settlement.
Company Analysis
from RHPMrs. Bectors Food Specialities Limited manufactures and markets premium and mid-premium biscuits and premium bakery products in India and exports to 64 countries across six continents.
Mrs. Bectors Food Specialities Limited, incorporated in 1995 and renamed in 1999, is one of the leading companies in the premium and mid-premium biscuits segment and the premium bakery segment in North India. The company manufactures and markets a range of biscuits including cookies, creams, crackers and digestives under the flagship brand 'Mrs. Bector's Cremica'. It also manufactures and markets bakery products in savoury and sweet categories including breads, buns, pizza bases and cakes under the brand 'English Oven'. The company operates six manufacturing facilities located in Phillaur and Rajpura (Punjab), Tahliwal (Himachal Pradesh), Greater Noida (Uttar Pradesh), Khopoli (Maharashtra) and Bengaluru (Karnataka). Following a scheme of amalgamation and arrangement approved by the High Court of Punjab and Haryana in 2014, the company consolidated its biscuits and bakery businesses after a family settlement.
biscuits manufacturingbakery productsfast-moving consumer goods (FMCG)food and grocery retail
Objects of the Issue
- Financing the project cost towards Rajpura Expansion Project ₹405.40 million p.20
- Financing the project cost towards expansion of the Rajpura Manufacturing Facility by establishing a new production line for biscuits ₹405.40 million p.96
- Capital expenditures - manufacturing facilities and expansion projects p.345
Issue Structure
- Total Issue
- ₹5,405.40 million (18,769,701 Equity Shares at ₹288 per share)
- Fresh Issue
- ₹405.40 million (1,408,592 Equity Shares)
- Offer for Sale
- ₹5,000.00 million (17,361,109 Equity Shares comprising ₹2,450.00 million by Linus, ₹385.00 million by Mabel, ₹1,860.00 million by GW Crown, and ₹305.00 million by GW Confectionary)
- Price Band
- ₹286 - ₹288 per Equity Share
- Lot Size
- 50 Equity Shares
- Face Value
- ₹10 per Equity Share
Business Model
The company manufactures and sells biscuits and bakery products through a combination of general trade channels and modern trade (supermarkets) primarily in North India, and exports biscuits to 64 countries across six continents. Revenue is generated from the sale of biscuits (both domestic and export), bakery products (including frozen products for institutional customers such as QSR chains), and contract manufacturing. The company operates through a distribution network of over 748 distributors and 196 super stockists serving approximately 458,000 retail outlets.
Business Segments
Manufacture and sale of biscuits including cookies, creams, crackers and digestives under the brand 'Mrs. Bector's Cremica' to domestic retail consumers primarily in North India
Export of biscuits under the brand 'Mrs. Bector's Cremica' as well as under third party private labels to 64 countries across six continents
Manufacture and sale of bakery products in savoury and sweet categories including breads, buns, pizza bases, frozen doughs, pizzas, cakes, cookies and cupcakes under the brand 'English Oven' to retail and institutional customers
Supply of buns and other bakery frozen products to institutional customers including QSR chains, Canteen Stores Department (CSD), and Indian Railway canteens and stores
Manufacturing and sale of biscuits products including branded offerings such as 'Mrs. Bector's Cremica'
Manufacturing and sale of bakery products including branded offering 'English Oven'
Manufactures and sells biscuits primarily in the premium and mid-premium segments including cookies, creams, crackers, and digestives. Also manufactures glucose biscuits and contract manufactures 'Oreo' biscuits and 'Chocobakes' cookies for Mondelez India Foods Private Limited.
Manufactures and sells premium bakery products in savoury and sweet categories including breads, buns, pizza bases, and cakes under the 'English Oven' brand for retail customers. Also manufactures and sells bakery and frozen products to institutional customers including QSR chains, cloud kitchens, multiplexes, hotels, restaurants and cafés.
Manufacturing and sale of biscuits for retail customers and institutional customers; exported to 64 countries
Manufacturing and supply of bakery products such as buns, kulchas, cakes and frozen products for retail customers and institutional customers including QSR chains
Manufacture and sale of biscuits in premium and mid-premium segments including cookies, creams, crackers, and digestives under 'Mrs. Bector's Cremica' brand; also manufactures 'Oreo' biscuits and 'Chocobakes' cookies on contract basis for Mondelez India Foods Private Limited
Manufacture and sale of premium bakery products in savoury and sweet categories including breads, buns, pizza bases, and cakes for retail customers under 'English Oven' brand sold in Delhi NCR, Mumbai, and Bengaluru
Manufacture and sale of bakery and frozen products including buns, kulchas, pizzas, and cakes to QSR customers with pan-India presence, cloud kitchens, multiplexes, hotels, restaurants and cafés; sole supplier of burger buns and pan muffins (frozen) to Connaught Plaza Restaurants Private Limited
Manufacturing and sale of biscuits and bakery products
Contract manufacturing of biscuits for third-party biscuit companies
SWOT Analysis
Strengths
- • Leading position in premium and mid-premium biscuits and premium bakery segments in North India(p.20)
- • Established brand recognition with 'Mrs. Bector's Cremica' and 'English Oven' brands across multiple markets(p.20)
- • Significant export presence across 64 countries on six continents(p.27)
- • Leading exporter of biscuits from India(p.44)
- • Largest supplier of buns to multinational QSR chains in India(p.33)
- • Wide and established distribution network with significant retail reach(p.41)
- • Diversified product portfolio across multiple categories with focus on premium segments(p.43)
- • Established track record of promoter leadership(p.48)
- • Experienced and skilled management team(p.48)
- • Multiple registered trademarks and intellectual property(p.48)
- • Strong credit ratings from multiple agencies(p.47)
- • Leading regional biscuit brand with strong North India presence(p.154)
- • Significant export presence and market share in international markets(p.155)
- • 100% in-house manufacturing capability with modern facilities(p.152)
- • Largest supplier of buns to major QSR chains with institutional relationships(p.155)
- • Diversified product portfolio across biscuits and bakery segments(p.152)
- • Strong brand equity with flagship 'Mrs. Bector's Cremica' brand(p.154)
- • Extensive distribution network across 23 states with 458,000 retail outlets(p.157)
- • Multiple quality certifications including FSSC 22000, BRC, SMETA and FDA approval(p.157)
- • Established multi-channel distribution covering 33+ locations across India with approved Railway supplier status(p.175)
- • Strong global export presence across 64 countries generating 22-33% of revenue(p.176)
- • Leading position in QSR bakery supply with largest bun supplier status to QSR chains(p.176)
- • Registered trademark brands 'Mrs. Bector's Cremica' and 'English Oven' recognized under class 30 of Trademarks Act(p.177)
- • Experienced workforce of 2,698 employees with structured training and development programs(p.177)
- • Diversified asset base including owned and leased properties across multiple states for manufacturing and operations(p.177)
- • Comprehensive insurance coverage for manufacturing facilities, equipment, products, and personnel(p.177)
- • Leading position in premium/mid-premium biscuits and bakery segments in North India(p.308)
- • Largest supplier of buns to major QSR chains in India(p.308)
- • Strong export presence with ~12% share of Indian biscuit export market(p.312)
- • Diversified geographic distribution across 26 states and 64 countries(p.308)
- • Unique capability to handle fresh, chilled and frozen bakery products(p.309)
- • Multiple quality certifications including FSSC 22000, FDA, BRC and SMETA(p.309)
Weaknesses
- • Brand usage restriction limiting expansion into other product categories(p.27)
- • Significant indebtedness with outstanding borrowings(p.28)
- • Significant litigation and regulatory issues involving promoter and group companies(p.30)
- • Group company (CAFL) with history of listing violations and disciplinary actions(p.28)
- • Negative cash flows from investing and financing activities despite positive operating cash flows(p.31)
- • Geographic concentration of biscuit manufacturing facilities in North India limiting pan-India reach(p.39)
- • Significant pending litigation including disciplinary actions against promoter(p.28)
- • High contingent liabilities not provided for on balance sheet(p.33)
- • Dependency on key management personnel(p.48)
- • Restrictive covenants limiting operational flexibility(p.47)
- • Risk of credit rating downgrade impacting borrowing costs(p.47)
- • Potential inability to vary Offer proceeds utilization despite business need(p.48)
- • Promoter control and conflicts with minority shareholders(p.49)
- • Potential conflicts in related party transactions(p.50)
- • High dependence on North India for biscuit business(p.174)
- • Limited presence in institutional bakery business post-COVID impact(p.165)
- • Underutilized capacity in certain product lines(p.171)
- • Reduced export focus in certain African markets due to external factors(p.155)
- • Concentration in export markets with North America representing most significant market; exposure to revenue volatility(p.176)
- • Dependence on private label exports generating 47.94% of export revenue, indicating brand concentration risk(p.176)
- • Exposure to potential trademark infringement risks from third parties affecting brand identity(p.177)
- • Historical SEBI/stock exchange disciplinary actions against Promoter and non-executive director regarding CAFL listing violations(p.200)
- • High debt burden with significant borrowings(p.269)
- • Dependence on bank financing with multiple lenders and complex covenants(p.271)
- • Significant pending litigation and contingent liabilities(p.272)
- • Plant and machinery concentration with lease arrangements(p.256)
- • High dependence on few QSR customers with no long-term supply agreements(p.311)
- • Significant exposure to raw material cost fluctuations, particularly wheat flour(p.311)
- • Reliance on third-party super-stockists and distributors with risk of misalignment(p.312)
- • Institutional customer segment significantly impacted by COVID-19 with no assurance of recovery(p.311)
- • Property ownership gaps for certain manufacturing locations(p.300)
- • Promoter litigation and family disassociation concerns(p.298)
Opportunities
- • Strong industry growth with biscuit and bakery market expected to grow at 9% CAGR(p.20)
- • Expansion potential into tier II and tier III cities through improved retail infrastructure(p.44)
- • Growing demand for premium and health-focused biscuit and bakery products(p.36)
- • Expansion of institutional customer base including cloud kitchens and hospitality segment(p.39)
- • Growing international export opportunities in emerging markets(p.45)
- • Diversification into frozen and value-added bakery products with higher margins(p.43)
- • Capacity expansion through Rajpura Expansion Project to meet growing demand(p.5)
- • Expansion of Rajpura manufacturing facility capacity(p.97)
- • Benefits of public listing and capital markets access(p.96)
- • Growth in premium and mid-premium biscuit segment projected at 9.5% CAGR(p.159)
- • Expansion in bread and buns market expected to grow at 9% CAGR to ₹76 billion(p.159)
- • Opportunity to expand geographical presence in other regions of India(p.159)
- • Growth in processed dough market for food services projected at 23% CAGR(p.147)
- • Expansion in export markets including Americas, MENA and Australasia(p.159)
- • Accelerated shift to packaged foods due to COVID-19 and food safety concerns(p.154)
- • Growing QSR chain market projected to grow at 22.7% CAGR(p.148)
- • Premium and mid-premium biscuit market growing at CAGR of 12.2% over last five years(p.176)
- • Under-penetrated QSR bakery supply market with growth potential for processed and semi-processed dough-based products(p.176)
- • Fragmented Indian premium bakery market providing expansion opportunities; large players face distribution challenges in newer territories(p.176)
- • Digital marketing and e-commerce channel expansion for bakery products across leading platforms(p.175)
- • International trade fair participation and export market expansion opportunities to enhance brand strength(p.175)
- • Scale of business enabling increased branding and promotion investment to grow market share and visibility(p.175)
- • Export market expansion with government incentives(p.243)
- • Domestic market growth with strong revenue from India(p.277)
- • Capital expenditure and capacity expansion(p.257)
- • Government grants and support for food processing(p.271)
- • Premium/mid-premium biscuits market expected to grow at 9.5% CAGR to ₹504 billion by FY2025(p.310)
- • Premium bakery products market expected to grow at 15% CAGR to ₹15 billion by FY2025(p.310)
- • QSR and CSD segment expected to grow 85% by FY2025(p.311)
- • Plan to expand niche premium product portfolio including nutritious biscuits and frozen products(p.310)
- • Geographic expansion strategy into South, Central and North America, MENA and Australasia(p.312)
- • Expansion of manufacturing capacity at existing facilities(p.311)
Threats
- • COVID-19 pandemic impact on business operations and market demand remains uncertain(p.22)
- • Changing consumer preferences toward healthier dietary options reducing demand for traditional products(p.26)
- • Intense competition in biscuit and bakery industry with few large players and numerous small-scale units(p.20)
- • Dependence on QSR customers without long-term contracts creating revenue volatility(p.33)
- • Raw material price volatility and supply disruptions affecting production costs(p.38)
- • Foreign exchange fluctuations impacting export revenues(p.31)
- • Regulatory and compliance risks including food safety, environmental and labor laws(p.38)
- • Dependence on third-party transportation providers creating supply chain risks(p.42)
- • Risk of product contamination and quality issues affecting brand reputation(p.37)
- • Health and nutrition concerns over consumption of biscuits and bakery products(p.38)
- • Potential loss of export promotion scheme benefits affecting cost structure(p.29)
- • Risk of legal disputes with promoter's disassociated relatives affecting company reputation(p.29)
- • COVID-19 pandemic disruption to operations and economy(p.51)
- • Risk from natural and man-made disasters(p.52)
- • Sovereign credit rating downgrades affecting borrowing costs(p.52)
- • Regulatory, economic and political uncertainties in India(p.52)
- • Risk of changes in tax laws affecting business(p.53)
- • Global financial instability and contagion effects(p.54)
- • Intellectual property infringement by competitors(p.49)
- • Insurance coverage may be inadequate for unforeseen risks(p.49)
- • Intense competition from established national brands with larger market shares(p.120)
- • Commodity-based raw material price fluctuations affecting margins(p.172)
- • COVID-19 pandemic causing significant contraction in food service segment(p.143)
- • Declining per capita consumption in Indian bread market limiting growth(p.139)
- • Significant number of unbranded competitors in biscuit market with low-cost advantage(p.116)
- • Severe impact on railway canteen operations limiting institutional business recovery(p.154)
- • Regional players gaining market share with localized taste preferences and integrated supply chains(p.116)
- • Highly competitive and fragmented premium and mid-premium biscuit market with numerous domestic and multinational competitors(p.176)
- • Regional competitors with cost advantages and distribution convenience in local areas challenging pricing and market share(p.176)
- • Unbranded bakery sector competition representing approximately 45% of Indian bakery market value share(p.176)
- • In-house commissaries and smaller players competing in QSR bakery supply segment(p.176)
- • Export revenue exposure to international trade dynamics, currency fluctuations, and changing market preferences across 64 countries(p.175)
- • Exposure to income tax disputes and regulatory demands(p.276)
- • Sales tax and entry tax liabilities across multiple states(p.276)
- • Foreign exchange fluctuation risk on exports(p.277)
- • Volatility in raw material costs and energy prices(p.274)
- • Associate company deposit freeze creating liquidity concerns(p.262)
- • Significant competition from larger national players with greater resources(p.313)
- • Exchange rate fluctuations adversely impact export competitiveness and profitability(p.313)
- • Political and economic instability in African export markets impacting revenues(p.312)
- • Raw material price volatility and supply chain disruption risks(p.311)
- • Continuing uncertainty of COVID-19 pandemic impact on operations and demand(p.314)
- • Risk of seasonal raw material spoilage affecting production capacity(p.311)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Anoop Bector | Promoter | 21.89% | — |
| Anoop Bector HUF | Promoter Group | 3.50% | — |
| AB Family Trust | Promoter Group | 10.39% | — |
| IB Family Trust | Promoter Group | 8.31% | — |
| SB Family Trust | Promoter Group | 8.31% | — |
| Linus Private Limited | Selling Shareholder | 22.88% | — |
| Mabel Private Limited | Selling Shareholder | 2.41% | — |
| GW Crown Pte. Ltd. | Selling Shareholder | 19.48% | — |
| GW Confectionary Pte. Ltd. | Selling Shareholder | 1.92% | — |
| Mr. Anoop Bector | Promoter | 21.89% | 21.36% |
| Mr. Anoop Bector | Promoter | — | — |
| Mr. Anoop Bector | Promoter | 21.89% | — |
| Anoop Bector | Promoter/Managing Director | — | — |
| Linus | Selling Shareholder | — | — |
| Mabel | Selling Shareholder | — | — |
| GW Crown | Selling Shareholder | — | — |
| GW Confectionary | Selling Shareholder | — | — |
| Linus Private Limited | Selling Shareholder | — | — |
| Mabel Private Limited | Selling Shareholder | — | — |
| GW Crown Pte. Ltd. | Selling Shareholder | — | — |
| GW Confectionary Pte. Ltd. | Selling Shareholder | — | — |
Leadership
Mr. Anoop Bector · Promoter and Managing Director
Mr. Subhash Agarwal · Chairman
Mr. Parveen Kumar Goel · CFO
Mr. Atul Sud · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Mrs. Bectors Food IPO FAQs
What is the lot size of Mrs. Bectors Food IPO?
The minimum lot size of Mrs. Bectors Food IPO is 50 shares. One lot costs ₹14,400 at the cut-off price.
When does Mrs. Bectors Food IPO open and close?
Mrs. Bectors Food IPO opened for subscription on 15 Dec 2020 and closed on 17 Dec 2020.
What is the listing date of Mrs. Bectors Food IPO?
Mrs. Bectors Food IPO listed on 24 Dec 2020.