The traditional bread,
Goencho Pao
The traditional bread, Goencho Pao

Shares in biscuit maker Mrs Bectors Food Specialities Ltd on Thursday more than doubled in their market debut signalling strong investor appetite for the country's food sector amid the COVID-19 pandemic.

The initial public offering (IPO) of the company which was nearly 200 times oversubscribed, comes days after Burger King India - a company to which Mrs Bectors sells buns.

The stock opened at Rs 501, reflecting a jump of 73.95 per cent from the issue price on the BSE. As the trade progressed, it rose to Rs 601.20, up 108.75 per cent. At the NSE, it made a debut at Rs 500, registering a premium of 73.61 per cent.

The company's market valuation was at Rs 3,338.27 crore on the BSE. Mirroring massive investor response, Mrs Bectors Food Specialities initial public offer was subscribed a whopping 198 times earlier this month. The price band for the share sale was at Rs 286-288 apiece.

Mrs Bectors Food manufactures and markets a range of products such as biscuits, breads and buns. It markets a wide variety of biscuits and breads under the flagship brand 'Mrs Bector's Cremica' and the 'English Oven', respectively.

Mrs Bectors raised about ₹ 540 crore in the IPO. The company will use proceeds from the fresh issue of 14 lakh shares in its IPO to set up a biscuit production line in Punjab.

For the year ended March 2020, the company posted profit of Rs 30.4 crore and revenue from operations of Rs 762 crore, a fall of 8.3 per cent and 2.8 per cent, respectively.

SBI Capital Markets Limited and ICICI Securities Limited were among the lead book runners for the IPO.

(with PTI inputs)

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