Mrs Bectors Food gets Sebi's approval to float Rs 550 crore IPO

Mrs Bectors Food, which had filed preliminary papers for IPO in October, obtained Sebi's observation on November 19, an update with the Securities and Exchange Board of India (Sebi) on Monday showed.

Sebi's observation is necessary for any company to launch public issues like initial public offer, follow-on public offer and rights issue.

Net proceeds of the issue would be utilised for financing the project cost towards expansion of the Rajpura manufacturing facility by establishing a new production line for biscuits and for general corporate purpose.

In addition, the company aims to achieve the benefit of listing on the stock exchanges.

SBI Capital Markets, ICICI Securities and IIFL Securities will manage the company's initial public offer (IPO).The equity shares will be listed on BSE and NSE.

It markets a wide variety of biscuits and bread under the flagship brand "Mrs Bector's Cremica" and the "English Oven" respectively.

Earlier in 2018, the company had filed draft papers with Sebi seeking to raise Rs 800 crore through IPO and had obtained the regulator's approval to float the public issue.

However, the company could not launch the initial share-sale due to averse market conditions, merchant bankers said.

Mrs Bectors Food has a list of notable clients including Burger King, Indian Railway Canteens, Hardcastle Restaurants, Connaught Plaza Restaurants and few others. However, the company has no long-term contract with any of its clients.

Mrs Bectors Food manufactures and markets a range of products such as biscuits, breads and buns.

In FY18, the revenue of the company increased from Rs 695 crore to Rs 764.9 crore in the previous fiscal year.

Prior to the offer, the promoter and promoter group of the company hold a 52.45 percent stake in the pre-offer equity share capital while selling shareholders have a 46.75 percent stake. The promoter and promoter group will not be selling their stake via the IPO.

(Inputs from PTI)