The IPO of bread and biscuits maker Mrs Bectors Food on Wednesday, opened to strong demand and was over-subscribed in just two hours. The Rs 541 crore initial public offer (IPO) by Mrs Bectors attracted over 4 times subscription on its second day of the bidding process. The issue will close on December 17.
The issue received bids for 5,41,65,550 shares, which was 4.09 times the issue size of 1,32,36,211 shares at about 10.15 am.
Mrs Bector IPO is priced lower compared to the peers on the valuation front making it a strong candidate for stellar listing. Industry experts believe the IPO will be subscribed manifold times.
The initial public offering of biscuits and bakery products maker has opened for subscription on December 15 and will close on December 17, with a price band of Rs 286-288 per share.
The IPO is being sold in Rs 286-288 price band and comprises an offer for sale (OFS) of Rs 500 crore and a fresh issue of Rs 40.5 crore. Investors can bid for a minimum of 50 equity shares and thereafter in multiples of 50 equity shares.
At the higher price band of Rs 288, the stock is valued at 28 times its trailing 12-month earnings of Rs 10.32.
Improved financials with a decline in net debt has declined and free cash flows have resulted in positive for the company.
