Mrs Bectors Food jumps nearly 5% after raising ₹400 crore through QIP

Shares of Mrs Bectors Food Specialities Ltd, the parent firm of brands like Cremica and English Oven, gained nearly 5% in trade on Tuesday, September 10, after the company said that it has successfully raised ₹400 crore through a qualified institutional placement (QIP) offer.

In a stock exchange notification issued on Tuesday, Mrs Bectors Food said that the fund-raise committee of the company has approved the issue and allotment of 25,80,645 equity shares of face value of ₹10 each to eligible qualified institutional buyers (QIBs).

The shares have been allotted at the issue price of ₹1,550 per equity share. This price includes a discount of 1.77%, or ₹27.85, per equity share, to the floor price amounting to ₹ 1,577.85 per piece. The total transaction size aggregates to ₹400 crore.

Among the key QIBs who were allotted shares included the Government of Singapore, Aditya Birla Sun Life, SBI Multicap Fund, Axis Mutual Fund, and Canara Robeco Mutual Fund.

Pursuant to the allotment of equity shares under the QIP, the paid-up equity share capital of Mrs Bectors Food stands increased from ₹58.8 crore (consisting of 5,88,17,474 equity shares of face value of ₹10 each) to ₹61.4 crore (consisting of 6,13,98,119 equity shares of face value of ₹10 each).

Reacting to the development, the Mrs Bectors Food stock gained as much as 4.7% on Tuesday to hit an intraday high of ₹1,785 apiece on the National Stock Exchange of India (NSE). The stock closed at ₹1,815 a piece on the NSE after clocking new all time high of ₹1,845

Last week, Mrs Bectors Food shares had hit their all-time high of ₹1,848.9 after the company had announced its plans to launch a QIP offer. Mrs Bectors Food share price has risen 21% in the past one month and 68% in the past one year.