Biscuit maker Mrs Bectors Food files draft papers with SEBI for Rs 550 crore IPO

Biscuit maker Mrs Bectors Food Specialities has filed draft papers with capital markets regulator Securities and Exchange Board of India (SEBI), seeking its go ahead to float Rs 550 crore initial public offer (IPO). The IPO will consist of share sale of Rs 500 crore by existing shareholders and promoters and fresh issuance of equity shares worth Rs 50 crore, as per the draft red herring prospectus (DRHP) filed with SEBI.

Existing shareholders - Linus Private Limited, Mabel Private Limited, GW Confectionary Pte Ltd and GW Crown Pte Ltd - will be offering stocks in the initial share sale.

The company intends to use net proceeds for financing the project cost towards expansion of its Rajpura manufacturing facility by establishing a new production line for biscuits and for general corporate purposes. Besides, the company aims to achieve the benefit of listing on the stock exchanges.

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SBI Capital Markets, ICICI Securities and IIFL Securities will manage Mrs Bectors Food Specialities' IPO. The equity shares of the company will be listed on BSE and NSE.

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 adverse market conditions, merchant bankers said.

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Mrs Bectors Food is engaged in the manufacturing and marketing of a range of products such as biscuits, breads and buns. It markets a wide variety of biscuits and breads under the flagship brand Mrs Bector's Cremica and the English Oven brand, respectively. 

With PTI inputs