Mrs Bectors Food Specialties IPO was signed 197.36 times by investors at the close of the bell on Thursday. The three day bidding process ended with all categories of investors oversubscribing their share of the problem. Non-institutional investors have shown the greatest interest in Ms Bectors, subscribing 621 times. With this Ms. Bectors surpassed the subscription rate of Burger King, the youngest title to debut on Dalal Street. Burger King – one of the most profitable quotes on the stock exchange this year – has been subscribed 156 times by investors.
Qualified Institutional Buyers (QIBs) have bid for their share 175 times. Retail investors have bid 28 times and company employees have subscribed to an excessive number of subscriptions 43.77 times. Non-institutional investors were the most aggressive bidders on the issue. Mrs. Bectors’ Rs 540 crore issue offers 1.32 crore shares but so far offers have been received for 250 crore shares.
In the unlisted space, Mrs Bectors Food’s shares have risen further and are trading at an 80% premium. “Although volatile, Ms. Bectors Food is trading at a gray market premium of Rs 225-230 in the gray market,” Manan Doshi, co-founder of UnlistedArena.com, an unlisted stock company, told Financial Express Online. and pre-IPO.
Analysts were expecting high subscription figures for Ms. Bectors following the successful Burger King IPO earlier this week. “The company’s (Ms. Bectors) results were best in the industry in the first half of fiscal 2021. Peers like Britannia Industries, Nestlé India, Prataap Snacks and DFM Foods are trading for final PE of 50.2, 85. , 6, 57.1 and 97.6 respectively, “said Keshav Lahoti, Associate Equity Analyst, Angel Broking. The IPO, priced at Rs 286-288 per share, is at a final PE of 27.9. “Given the significant discount compared to listed competitors, the assessment is comforting. We are optimistic about the long-term growth prospects of the industry and the company, and therefore recommend that you “underwrite” the problem for the long term and for listing gains, “he added.
Mrs Bectors Food is India’s largest sandwich supplier to Quick Service (QSR) restaurant chains such as Burger King, McDonald’s, KFC, Carl’s Jr, Pizza Hut and Dominos Pizza. Investors are now rallying behind Ms. Bectors to replicate Burger King’s earnings. The QSR sector’s big stock market debut with 92% premium and helped investors pocket more than 3x returns in the first few trading days
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