Does the name ‘Cremica’ ring a bell? You probably know it for its biscuits and breads, too. Mrs Bector’s Food Specialities Ltd—the company that owns the Cremica brand—is a key supplier to leading fast-food chains in India. The company is going public and here’s a quick run-down on its IPO.
Price band: ₹286-288 per equity share
Lot size: 50 shares
Issue size: ₹540 crore
Issue opens on: 15 December 2020
Issue closes on: 17 December 2020
Basis of allotment date: 22 December 2020
Initiation of refunds: 23 December 2020
Credit of shares to Demat account: 24 December 2020
Expected listing date: 28 December 2020
Registrar: Link Intime India Private Limited
Click here to apply for this IPO
As per the red herring prospectus filed by the company, Mrs. BectorFood is the largest supplier of buns in India, and a key supplier to quick-service restaurant (QSR) chains such as Burger King, McDonald’s, and KFC. The company is among the top two Indian biscuit manufacturers in the premium and mid-premium biscuits segment in Punjab, Himachal Pradesh, Ladakh and Jammu and Kashmir.
The ₹540 crore offer consists of a fresh issue of ₹40 crore, and an offer for sale of ₹500 crore. The former will be used to expand the company’s biscuit factory in Punjab, while the latter will go to selling investors. The promoters will not dilute their share and will continue to own over 51% of the business after the IPO. In FY20, the company earned a net profit of ₹30 crore and revenue from operations of ₹762 crore.
Qualified institutional buyers (QIB) will be allotted to 50% of the fresh issue, while the quota for non-institutional investors and retail investors stands at 15% and 35% respectively. We’ll keep you updated on all the latest information on this and upcoming IPOs. Read the red herring prospectus to dive deeper into the IPO’s details. Click here to subscribe to the Mrs. BectorFood IPO with Upstox.