Mrs Bectors Food's IPO to open on December 15: 10 things to know

The fifteenth IPO of 2020- Mrs Bectors Food Specialities of Rs 541 crore- is all set to hit the market on Tuesday, December 15. The anchor book will open for subscription on December 14.

Here are 10 things to know about the IPO:

1-The IPO of FMCG firm comprises an offer for sale of Rs 500 crore by existing shareholders - Rs 245 crore by Linus, up to Rs 38.50 crore by Mabel, up to Rs 186 crore by GW Crown PTE and a fresh issue worth Rs 40.5 crore.

2-The price band is set at Rs 286-288 apiece. Market lot size of Mrs. Bectors Food IPO is 50 shares. A retail-individual investor can apply for up to 13 lots (650 shares worth Rs 187,200).

3-The offer of the firm, which supplies buns to quick-service restaurant (QSR) chains such as McDonald's, KFC, Burger King and Carl's Jr among others, includes a reservation of Rs 50 lakh worth of shares for eligible employees, who will receive shares at a discount of Rs 15 per share.

4-The premium biscuit-maker and leading supplier of buns to fast-food chains intends to use net proceeds for financing the project cost towards expansion of its Rajpura manufacturing facility by establishing a new production line for biscuits and for general corporate purposes. Besides, the company aims to achieve the benefit of listing on the stock exchanges. "Listing of the equity shares will enhance our visibility and brand and provide liquidity to its existing shareholders," the company said.

5-The FMCG firm recently organised a virtual analyst meet, which was attended by Nirmal Bang Institutional Equities. The meet was represented by MD Anoop Bector, whole-time director Ishaan Bector, CFO Parveen Kumar Goel (CFO) and Head-Finance & Strategy Deepak Kumar Jain.

6-The firm had filed draft papers with the regulator in August seeking its go ahead to float IPO. SBI Capital Markets, ICICI Securities and IIFL Securities will manage Mrs Bectors Food Specialities' IPO.

7-Finalisation of allotment for Mrs. Bectors Food IPO will be done on December 22, 2020, and the allotted shares will be credited to your demat account by December 24, 2020. Link Intime India Private Ltd is the registrar for the IPO. The equity shares of the company are likely to be listed on December 28, 2020 on BSE and NSE.

8-Incorporated in 1995, Mrs Bectors Food manufactures and markets a range of products such as biscuits, breads and buns to retail consumers in 26 states within India, as well as to reputed institutional customers with pan-India presence, and to 64 countries across six continents during FY20. It markets a wide variety of biscuits and bread under the flagship brand 'Mrs Bector's Cremica' and the 'English Oven', respectively.

9-As of June 30, 2020, its bakery segment has a total of 96 products and the Biscuits segment has a total of 384 items. It sells its products to 23 states in India and also exports its products under its own brand name and third-party private labels to 64 countries all over the world.

10-Shares of Mrs Bector's Food Specialities are commanding a premium of over 60% in the grey market. Up to 50% of the issue will be reserved for Qualified Institutional Buyers (QIB) while 35% will be reserved for retail investors and not less than 15% for non-Institutional Investors (NIIs).