Stellar debut for Mrs. Bectors Food, share price closes 107% higher

The investment of Rs 14,400 for one lot of 50 shares provided more than double the money at Rs 29,777.5 on the closing basis, in a short period.

Biscuits and bakery products company Mrs Bectors Food Specialities shares had a great run on its market debut, closing 107 percent higher on December 24, doubling investors’ money in a day.

An investment of Rs 14,400 in one lot of 50 shares more than doubled to Rs 29,777.5 on the closing basis. The stock closed the session at Rs 595.55 on the BSE, up by 106.79 percent compared to the issue price of Rs 288. On the National Stock Exchange, the share settled with gains of 106.32 percent at Rs 594.20.

Shares opened at Rs 501 on the BSE and Rs 500 on the NSE and hit a 20 percent upper circuit in early trade.

Mrs Bectors Food traded with a volume of more than 3.7 crore shares on the NSE and 37.81 lakh shares on the BSE.

The company raised Rs 540.54 crore via its initial public offering, which was subscribed 198.02 times during December 15-17. The company, which counts QSR chains such as Burger King, Connaught Plaza, Hardcastle and Yum! Restaurants among its customers, plans to utilise net fresh issue proceeds (out of Rs 40.54 crore) for financing the expansion of its manufacturing Punjab’s Rajpura.

Experts remain positive on Mrs Bectors Food with a long-term perspective and say it can be the new Britannia over coming years.

“We are positive on long-term prospects of the company, as it is one of the leading brands in biscuits and bakery businesses in north India and has established a presence in retail and institutional bakery business with modern and automated production process & a focus on quality control,” Astha Jain, Senior Research Analyst at Hem Securities told Moneycontrol.

Mrs Bectors Food Specialities is a three-decade-old company in the premium and biscuits and bakery segment. It manufactures and markets biscuits under its flagship brand Mrs. Bector’s Cremica and bakery products under English Oven label.

It supplies its products to retail consumers in 26 states and reputed institutional customers with pan-India presence and to 64 countries across the world. It has six manufacturing facilities in Phillaur, Rajpura, Tahliwal, Greater Noida, Khopoli and Bengaluru.

“We advise investors to hold the stock in long term portfolio for two-three years investment horizon as we believe and foresee Mrs Bectors Food as the next Britannia in making,” Prashanth Tapse, AVP Research at Mehta Equities said.

With a unique integrated business model, Mrs Bectors Food had approximately 12 percent share of the Indian biscuit export market and contributed more than 50 percent by value of biscuit exports. “And with changing lifestyles and increasing preference for branded and packaged foods, Mrs Bectors Food is well placed to tap the growth in organised retail,” he added.

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