Mrs. Bectors Food Specialties plans Rs. 600 crore IPO

Mrs. Bector’s Food Specialties plans a secondary sale IPO to raise Rs. 500 to 600 crores from the equity market. 

The objective of the IPO is to provide a part-exit for its private equity investors. PE firms CX Partners and Gateway Partners hold 30 per cent and approx. 17 per cent stakes, respectively. The company is cash-rich and does not need capital for expansion. 

The company offers its products in 80 countries through a worldwide network of distributors and retailers. It also operates as a suppliers to national and international brands, including Cafe Coffee Day, Domino's, McDonald’s, Jet Airways, KFC and Starbucks. The company's major products include cookies, digestives, crackers, creams biscuits and bread. The company's most popular brand is Cremica. 

In 2013, the company had proposed an IPO, but as the promoter family demerged the biscuit business from other liquid condiments and sauce business, an IPO was not found feasible. 

Among listed players, the company's closest peers is Britannia Industries, while FMCG stocks including ITC, Hindustan Lever have products in the biscuit and bread category. 

Meanwhile, among FMCG stocks, Britannia Industries was trading at Rs. 5,367.95 per share, up by 0.15 per cent and Nestle India was at Rs. 9,064.00 per share, up 0.86 per cent, Hindustan Unilever was at Rs. 1,450.00 per share, down 0.09 per cent, ITC was at Rs. 276.10 per share, up by 0.29 per cent during the morning session on Thursday.