Bread and biscuits maker Mrs Bectors Food Specialities is planning to hit the capital markets mid next week to raise around Rs 450-500 crore to fund the company's brownfield expansion of Rajpura manufacturing unit in Punjab.
The proposed Initial Public Offering will open on December 15 and will close on December 17 and the price band has been fixed at Rs 286-288 per equity share of a face value of Rs 10 each.
The minimum bid lot is 50 equity shares and multiples of 50 equity shares thereafter, Mrs Bectors Food Specialities managing director Anoop Bector told reporters at the IPO roadshow.
The IPO would comprise of a fresh issue of equity shares worth Rs 40.54 crore and an offer for sale (OFS) by existing shareholders worth Rs 500 crore, which includes an offer for sale aggregating up to Rs 245 crore by Linus, up to Rs 38.50 crore by Mabel, up to Rs 186 crore by GW Crown PTE. Ltd and up to Rs 30.50 crore by GW Confectionary PTE.
Up to 50 per cent of the issue will be reserved for Qualified Institutional Buyers (QIB) while 35 per cent will be reserved for retail investors and not less than 15 per cent for the non-Institutional Investors (NIIs). The employee reservation portion would be up to Rs 50 lakh.
As the promoter is not selling any equity, they will continue to hold over 51 per cent of the shareholding after the IPO.
"We have 52 per cent equity in the company and we are not selling any of the equity. So, we will only get diluted to the extent of the primary issue, which will be over 51 per cent," Bector told PTI.
The funds raised through the IPO will be utilised for brown-field expansion of its Rajpura manufacturing unit and establishing a new production line, Bector said.
"We will use these funds in setting up a modern plant in Rajpura. We are going to be adding one more line over there. This is going to be a brown-field expansion, and that one biscuit line will give an additional 14,000-14,400 tonnes of biscuits per annum," he added.
The company sells biscuits under the 'Cremica' brand and manufactures and markets a wide range of biscuits such as cookies, creams, crackers, digestive biscuits, and an array of premium breads under the 'English oven' brand.
Mrs Bectors Food Specialities is also a leading supplier of buns to quick-service restaurant (QSR) chains such as McDonald's, KFC, Burger King and Carl's Jr among others.
"We are dominant in North India and supply biscuits in the premium and the mid-premium segment and hold a 4.5 per cent market share in this category. And on the brand side of the business, we hold a 5 per cent market share," Bector stated.
Talking about the company's exports, he said Bector Foods is focused on strengthening its existing markets in Canada, the US, South America, South Africa, Eastern Africa and the MENA region (the Middle East and North Africa).
The company currently exports to around 60 countries, he said adding that the ratio of Bector Foods domestic and export business is 65:35, Bector added.
SBI Capital Markets, ICICI Securities and IIFL Securities are the books running lead managers of the issue.
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