The grey market premium for Mrs Bectors Food initial public offer (IPO) has fallen to 67% after the end of three-day share sale. The premium, which stood at 76% (Rs 220) on the first day (December 15) now stands at Rs 190-195 per share. Bectors Food share is likely to be listed at Rs 483 instead of the earlier Rs 508 on December 29.
The IPO saw bumper subscription on its last day (December 17). The biscuit maker's share sale was subscribed 198.02 times the issue size. The IPO received bids for 262.10 crore equity shares against offer size of more than 1.32 crore equity shares (excluding anchor book), subscription data showed.
Portion for retail investors was subscribed 29.3 times and that of employees saw bids 45.45 times the size allocated for them.
Portion allocated for non-institutional investors saw subscription of 620.85 times and that of qualified institutional buyers 176.85 times.
The price band of the IPO was fixed at Rs 286-288 per equity share. The firm plans to raise Rs 450-500 crore through the IPO. The company's biscuit products are sold under the flagship brand 'Mrs Bector's Cremica', and the premium bakery products under 'English Oven'.
The likely listing premium of Bectors Food is lesser than the recent listing of Burger King India. Share of Burger King listed at a premium of 92.25% over issue price of Rs 60 on BSE.
Later, Burger King India shares surged 265% over issue price in four sessions since their debut on December 14. However, the stock has been witnessing profit booking in the last two sessions. The share has been stuck in lower circuit of 10% for last two sessions.
Meanwhile, Bectors Food share sale is the second IPO in December to receive over-subscription in the first few hours itself after Burger King India. Mrs Bectors Food Specialities raised Rs 162 crore from anchor investors. Face value of the stock is Rs 10 per share each. The proceeds of the IPO will be used to fund brownfield expansion of Rajpura manufacturing unit in Punjab.
The minimum bid lot for the IPO was 50 equity shares and multiples of 50 equity shares thereafter. A retail individual investor could apply for up to 13 lots (650 shares or Rs 1,87,200).
The IPO comprised of a fresh issue of equity shares worth Rs 40.54 crore and an offer for sale (OFS) by existing shareholders worth Rs 500 crore. This included an offer for sale aggregating up to Rs 245 crore by Linus, up to Rs 38.50 crore by Mabel, up to Rs 186 crore by GW Crown PTE. Ltd and up to Rs 30.50 crore by GW Confectionary PTE.
By Aseem Thapliyal