Ms. Bectors’ IPO oversubscribed in all categories.
Ms. Bectors Food Specialties’ IPO was subscribed 197.36 times by investors at the closing bell on Thursday. The three-day bidding process was completed when all categories of investors oversubscribed their portion of the issue. Non-institutional investors showed the greatest interest in Ms. Bectors, subscribing 621 times. Ms. Bectors has exceeded the subscription rate for Burger King – the youngest stock to debut on Dalal Street. Burger King – one of the most profitable listings on the stock exchanges this year – has been subscribed to 156 times by investors.
Qualified Institutional Buyers (QIB) have bid 175 times for their stake. Private investors are bidding 28 times and company employees have oversubscribed 43.77 times. Non-institutional investors were the most aggressive bidders for the issue. Ms. Bectors’ Rs 540 crore issue is offering 1.32 crore shares, but bids have been placed for 250 crore shares to date.
In the unlisted area, the shares of Ms. Bectors Food continued to rise and are trading at a premium of 80%. “Although volatile, Mrs. Bectors Food trades in the gray market with a gray market premium of 225-230 rupees,” said Manan Doshi, co-founder of UnlistedArena.com, a company that deals with unlisted stocks and shares prior to its IPO deals opposite Financial Express Online.
Analysts had expected high subscription numbers for Ms. Bectors following the success of Burger King’s IPO earlier this week. “The company’s (Ms. Bectors) results outperformed the industry for the first half of fiscal 2021. People of the same age as Britannia Industries, Nestle India, Prataap Snacks and DFM Foods have a trailing PE of 50.2, 85.6, 57.1 and 97.6 respectively. Said Keshav Lahoti, associate equity analyst at Angel Broking. The initial public offering at a price of 286 to 288 rupees per share has a trailing PE of 27.9. “Given the considerable discount compared to listed competitors, the rating is reassuring. We are positive about the long-term growth prospects for the industry and the company, so we recommend “subscribing” to the issue for both the long term and for listing profits, he added.
Mrs Bectors Food is India’s largest bread roll supplier to fast food chains (QSR) such as Burger King, McDonald’s, KFC, Carl’s Jr., Pizza Hut, and Dominos Pizza. Investors are now gathering behind Ms. Bectors to replicate Burger King’s profits. The QSR industry’s big debut on the exchanges with a 92% premium helped investors get more than three times their return in the first few days of trading.
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