Shares of Mrs. Bectors Food Specialities Ltd. listed at a 74% premium over offer price on market debut after investors piled into the initial public offering of the supplier to McDonald's to KFC, making it the most successful issue by any Indian company in more than three years.
The stock ended 106% higher than its issue price at Rs 594.2.
The stock began trading at Rs 501 apiece, a 74% premium over the issue price of Rs 288. In early trading, the scrip gained further, hitting a high of Rs 601.2 apiece, or 109% gain compared to its issue price.
Mrs. Bectors' three-day maiden offer, which closed on Dec. 17, was subscribed 199 times at the end of the final day of bidding. That was the most for any Indian IPO since Salasar Techno Engineering Ltd.'s in July 2017.
The demand was led by non-institutional investors, who saw the portion reserved for them subscribe 625.2 times compared to the shares on offer. Institutional subscription for the issue stood at 178 times, while the retail investor category was subscribed 29.53 times.
Ahead of the IPO, Mrs. Bectors had raised Rs 162 crore from anchor investors, including Goldman Sachs India Ltd., HDFC Standard Life Insurance and Franklin India Smaller Companies Fund. The company plans to utilise the proceeds from the share sale to expand its biscuit factory in Punjab.
Research Reports On Mrs. Bectors:
- Anand Rathi: Mrs. Bectors Food IPO - Investment Rationale
- ICICI Direct: Mrs. Bectors Food IPO - Investment Rationale
- Prabhudas Lilladher: Mrs. Bectors Food IPO - Biscuits Scalability An Opportunity
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