Mrs Bectors Food’s Rs 540-cr IPO to open tomorrow: Here’s what you need to know
Mrs Bectors Food Specialities Ltd will launch its three-day Rs 541-crore initial public offering (IPO) on Tuesday as the biscuit and bread maker aims to raise funds to expand its production capacity and investors seek a partial exit. The company had in 2018 filed draft papers with the Securities and Exchange Board of India (Sebi) seeking to raise Rs 800 crore through IPO and had obtained the regulator’s approval to float the public issue. The company, however, could not launch the initial share-sale due to adverse market conditions.
Mrs Bectors Food, which had filed preliminary papers for IPO in October, got Sebi’s nod in November.
Here’s what you need to know about Mrs Bectors Food’s IPO:
1. The initial share-sale will open on December 15 for public subscription and close on December 17.
2. The price band has been fixed at Rs 286-288 per share for the initial public offering, the company said in a statement.
3. The IPO comprises fresh issuance of shares worth Rs 40.54 crore and offer for sale to the tune of Rs 500 crore by existing shareholders.
4. Net proceeds of the issue would be utilised for financing the project cost towards the expansion of its Rajpura manufacturing facility by establishing a new production line for biscuits and for general corporate purpose.
5. The company aims to achieve the benefit of listing on the stock exchanges.
6. The minimum bid lot is 50 equity shares and multiples of 50 equity shares thereafter.
7. The IPO would comprise of a fresh issue of equity shares worth Rs 40.54 crore and an offer for sale (OFS) by existing shareholders worth Rs 500 crore, which includes an offer for sale aggregating up to Rs 245 crore by Linus, up to Rs 38.50 crore by Mabel, up to Rs 186 crore by GW Crown PTE. Ltd and up to Rs 30.50 crore by GW Confectionary PTE.
8. Up to 50% of the issue will be reserved for Qualified Institutional Buyers (QIB) and 35% will be reserved for retail investors and not less than 15 per cent for the non-Institutional Investors (NIIs). The employee reservation portion would be up to Rs 50 lakh.
9. Linus Private Limited, Mabel Private Limited, GW Confectionery Pte Ltd and GW Crown Pte Ltd will be offering stocks in the initial share-sale.
10. SBI Capital Markets, ICICI Securities and IIFL Securities will manage Mrs Bectors Food’s initial public offer (IPO). The equity shares will be listed on BSE and NSE.
(With agency inputs)