The public issue of Mrs Bectors Food Specialities, a leading premium biscuit and bakery firm with a 4.5 percent market share, was subscribed 198 times on December 17, the final day of bidding. It generated bids worth over Rs 40,000 crore.
This is the highest-ever subscription for IPOs of more than Rs 200 crore in size. Previously, only three small issues have garnered more than 200 times subscription.
The huge oversubscription for the IPO of Mrs Bectors comes close on the heels of the successful debut of Burger King India, whose stock tripled on listing.
The IPO comprises a fresh issue of Rs 40.54 crore and an offer-for-sale of Rs 500 crore. A price band of Rs 286-288 per share band has been fixed for the public issue.
The offer received bids for 262.1 crore equity shares against the initial public offering (IPO) of more than 1.32 crore equity shares (excluding the anchor book), according to the data available on the exchanges.
The portion set aside for non-institutional investors has seen subscribed 620.85 times and that of qualified institutional buyers 176.85 times. Retail investors and employees' reserved portion was subscribed 29.3 and 45.45 times respectively.
Experts believe that the domestic biscuit and bakery market is expected to grow by 9 per cent in the next few years due to urbanisation and an increase in disposable income. The institutional Indian bakery industry is expected to grow by 20 per cent due to the increasing market share of QSR chains. The attractive valuation relative to its peers helped draw investors towards the IPO.
At the top end, the company will have a market capitalization of nearly Rs 1,700 crore on a post-diluted basis. Mrs Bector will use the issue proceeds for setting up of a new production line for biscuits.
The company manufactures and markets cookies, creams, crackers, digestives and glucose under its brand 'Mrs. Bector's Cremica'.
