Mrs Bectors' entry at 74% premium, Rs 288 share listed at Rs 501

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Mrs Bectors IPO Listing Today: Mrs Bectors Food has made 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 the 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 subscribing to the IPO for listing gains.

Investor’s get full Benefit

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After listing, shares of Mrs Bectors Food have increased sharply. The stock has risen 102 percent or Rs 293 to Rs 580.80 from the issue price on BSE. In the first year of the new year, the investor IPO of Mrs Bector Food has become silver. Here those who had invested Rs 1 lakh, their money has increased to Rs 2 lakh only on the listing.

2020: Highest Subscribed

The price band for Mrs 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.

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Company business

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 Mrs Bectors Food sells bakery products called ‘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 percent 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, Mrs Bectors will benefit further.

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