India: Mrs Bectors Food IPO  subscribed 11.4 Times On Second Day

By 5.30pm, the issue had received bids for 15.09 crore equity shares, 11.4 times the issue size of 13.2 million equity shares, according to data available on the exchanges.

The retail investor portion of the share sale of the Ludhiana-based premium packaged biscuit maker was subscribed 16.36 times, while the portion set aside for non-institutional investors witnessed subscription of 8.6 times and that of qualified institutional buyers 4.67 times. The IPO is being sold in the ₹286-288 price band and comprises an offer for sale of ₹500 crore and a fresh issue of ₹40.5 crore.

Investors can bid for a minimum of 50 equity shares and thereafter in multiples of 50 equity shares.

“We think Mrs Bectors Food should be able to grow in line with the industry managed by the promoters having more than 25 years of sector knowledge. Company results were better than the industry in the first half of the fiscal 2021. Company peers such as Britannia Industries, Nestlé India, Prataap Snacks and DFM Foods are trading at trailing PE of 50.2, 85.6, 57.1 and 97.6, respectively. On the other hand, the company is priced at trailing price to equity (PE) of 27.9. Given the significant discount compared to listed peers there is comfort on the valuation,” said Angel Broking in an IPO note.

The article was first published on livemint.com