On Tuesday, Ms. Bectors Food Specialties Ltd opened a three-day initial public offering (IPO) worth 541 million lei, at a strong demand and was overwritten in just two hours. As of 12:30, the IPO has been subscribed 1.57 times, and the retail segment has been subscribed almost three times. The initial sale of the shares for public subscription will end on December 17. Ms Bectors Food, which submitted preliminary work for the IPO in October 2020, was again chaired by the Securities and Exchange Board of India (Sebi) in November.
The IPO of Bectors Food, a fast food restaurant (QSR) buns supplier such as McDonald’s, KFC, Burger King and Carl’s Jr., among others, follows the stellar response to the IPO Burger King whose actions were doubled on the day of their listing Monday.
Here are 7 things to know about the IPO for Mrs. Bectors Food:
1. The IPO price band for Ms Bectors Food was set at 6 286-288 per share with a face value of ₹ 10 ₹ each, the company said in a statement.
2. The minimum tender lot shall be 50 capital shares and multiples of 50 capital shares.
3. The IPO includes a new share issue worth 40.54 billion lei and a sale offer worth 500 million euros by existing shareholders through which the company aims to obtain the advantage of listing on the stock exchange.
4. The finalization of the allocation base will take place until December 22, and the reimbursements / unblocking of the ASBA fund will take place until December 23, according to the indicative chronology of the IPO of Mrs. Bector Food, according to the brokerages. The credit of the capital shares in the DP account will probably take place until December 24, and the listing will be done until December 28.
5. The funds raised through the IPO will be used to expand the company’s Rajpura production unit and establish a new production line.
6. As the promoter does not sell any shares, it will continue to hold more than 51% of the shares after the IPO. After the IPO, the participation in promoters will decrease to 51.13%, from 52.39%.
7. SBI Capital Markets, ICICI Securities and IIFL Securities will manage Ms. Bectors Food’s Initial Public Offering (IPO). The capital shares will be listed on the BSE and NSE. Linus Private Limited, Mabel Private Limited, GW Confectionery Pte Ltd and GW Crown Pte Ltd will offer shares in the initial sale of the shares.
(With agency entries)