Mrs. Bector Food Speciality IPO Analysis
Mrs. Bector Food Speciality
IPO Analysis
The Premium biscuit maker
coming up with the 550 crore IPO, Here are 5 things you should consider before
investing in IPO:
Brief History :
Incorporation Year : 1995
Mrs. Bectors Food Specialties
Ltd is one of the leading companies in the premium bakery segment and premium
and mid-premium biscuit segment in North India.
Current Portfolio :June 30,
2020, its bakery segment has a total of 96 products and the Biscuits segment
has a total of 384 items
Promoters and Shareholding :
Promoter :Mr. Anoop Bector
Shareholding :Have 39.90% pre
issued Share Capital
Promoter from very start of
the company. Now, He is also MD of the company.
*One things to be focused in
this IPO* :
It made an attempt in 2018
and had secured SEBI's nod but chose to defer the plans due to market
conditions.
This is their 2nd
attempt, the firm is planning to launch the IPO on December 15th after having
received a speedy approval from Sebi in 29 days. Perhaps, the fastest for a
non-PSU IPO in recent years.
Product :
According to the documents
filed with SEBI, MrsBectors Food Specialties is the largest supplier of buns in
India to leading QSR (quick service restaurant) chains such as Burger King ,
McDonalds, KFC and Pizza Hut.
It has also ventured into the
frozen dough segment where it competes with rival vendor Baker's Circle, which
has the largest market share.
•
2 category of
Product :
•
Biscuit :
Brand name "Mrs. Bector'sCremica”
•
The category
accounted for 59.2% of its revenue from operations for FY2020.
•
Bakery Products : Brand
name of "English Oven”, which contributed 17.1% to its revenues in
FY2020.
Competitive Strength of the company :
•
A leader of
biscuits segment in North India.
•
Supplier of Buns
for the Mcdonald’s, Burger King, Pizza Hut.
•
Major food
certifications i.e. BRC, USFDA, and FSSC.
•
Leading biscuits
exporter to 64 countries.
•
Completely Modern
production process.
•
Strong sales and
distribution network.
•
Diversified
product portfolio.
Since the company is supplier
of Next to the tourism industry, the Quick Service restaurant food industry
lines up as most affected by COVID-19.
Many shops have closed with
huge money burnt due to the lockdown.
Heavy competition, which has a
huge impact more than opportunities the industry has.
Basic Details of the IPO :
Opening Date : 16 December
2020
Closing Date : 18 December 2020
Pre issue Shareholding of Group : 52.45%
Issue Size : 550 Crore
Offer for Sale : 500 Crore
Fresh Issue : 50 Crores
Objects
of the Issue:
•
To finance the
cost of Rajpura Expansion Project.
•
To meet general
corporate purposes.
Financial Performance of the Company :
|
|
FY 2018 |
FY 2019 |
FY 2020 |
Q1 FY2021 |
|
Revenue |
695.8 |
786 |
765 |
203.8 |
|
Expenses |
642.8 |
735.4 |
725.8 |
182.5 |
|
Netincome |
36.1 |
33.2 |
29.8 |
15.5 |
|
NetMargin |
5.2 |
4.2 |
3.9 |
7.6 |
Company’s CAGR from both
Biscuits and Buns, Pizza Bases from 2015-2025
Things to be considered before investing IPO :
SEBI
Nod on IPO Papers filed in 2018.
Company’s
Exceptional performance in recent quarter even during lockdown when business of
all peers came to standstill.
Reduction
in IPO size from 800 Cr in 2018 to 550 Cr.
Blog by Nimish Maheshwari
Beat The Street
Note : No content of this blog should be construed to be investment advice. You should consult a qualified financial advisor prior to making any actual investment or trading decisions. All information is for educational and informational use only. The Author accepts no liability for any interpretation of article or comments on this blog being used for actual investment. This is purely an information services, and any trading done on the basis of this information is at your own, sole risk.
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