Ms. Bectors oversubscribed IPO on first day of stock sale

On the first day of subscription, private investors bet on the IPO of Mrs. Bectors Food Specialties Ltd., a supplier of McDonald’s to KFC.

The issue was subscribed to 1.54 times on December 15 from 12:27 p.m. This is based on data compiled by Edelweiss Partners. The IPO ends on December 17th.

Subscription details:

  • Institutional investors: 0

  • Wealthy individuals: 25%

  • Private investors: 2.96 times

  • Employees: 91%

The first offering includes a new issue of shares valued at Rs 40.5 billion and a sales offer of Rs 500 billion by Linus Pvt., Mabel Pvt., GW Crown Pte. and GW Confectionery Pte. The price range for the sale of shares has been set at 286 to 288 rupees each, according to the prospectus for red herring.

The company has raised Rs.162 billion by allocating 56.25,415 shares to anchor investors including Goldman Sachs India Ltd., HDFC Life Insurance, Franklin India Smaller Companies Fund and IDFC Emerging Business Fund, according to its listing. A total of seven investment funds were applied for through a total of 23 programs.

Ms. Bectors plans to use the proceeds to expand her cookie factory in Rajpura, Punjab.