Mrs Bectors Food Specialities – the manufacturer of Cremica buiscuits – has got regulatory green light from SEBI to launch its IPO. The company filed its draft prospectus on 13 August 2018 and received SEBI observations last week. The upcoming IPO of the bun supplier to McDonald’s is likely to mobilize INR800 crore (INR8 billion) through an Offer For Sale (OFS) by existing shareholders.
The company counts private equity investors CX Partners and Gateway Partners among its investors. Both private equity investors picked nearly 47%equity stake in the company in December 2015 for USD67.5 million.
The cash rich company isn’t in need of funds and thus, no amount from IPO proceeds will go to the company. Among the existing shareholders, CX Partners’ entity Linus Private Limited plans to sell shares worth up to INR375.5 crore while promoter Anoop Bector will offload shares to the tune of INR33.8 crore.
Gateway Partners’ group entities GW Crown Pte Ltd (INR277.7 crore), GW Confectionary Pte Ltd (INR50 crore) and Mabel Private Limited (INR63 crore) will also participate in the OFS IPO.
Mrs Bectors Food Specialities – Biscuits, Breads and Buns
The company is one of the leading companies in the non-glucose biscuits and premium breads segment in North India. The company has a retail presence in 11 states through 135 super-stockists and 570 distributors where it manufactures and markets a range of products such as biscuits, breads and buns.
It also exports biscuits from India under its own brand as well asunder third party private labels to 61 countries. Its brands include Mrs.Bector’s Cremica for biscuits and English Oven for breads.
On the institutional side, Mrs Bectors Food Specialities is the largest supplier of buns in India to QSR chains such as Hardcastle Restaurants Private Limited (master franchisee of McDonald’sin west and south India) and Burger King India Private Limited. The business contributed 13.09% to revenues in FY2018.
The company has six manufacturing facilities in Phillaur andRajpura (Punjab), Tahliwal (Himachal Pradesh), Greater Noida (Uttar Pradesh), Khapoli (Maharashtra) and Bengaluru (Karnataka).
In the year ended 31 March 2018, the company posted comprehensive income of INR32.2 crore on total revenues of INR656.9 crore, both figures reflecting a health growth over past year.
Going forward, the company plans to set up a new manufacturing facility in Dhar (Madhya Pradesh), which will help it in serving markets outside North India, especially in Maharashtra and West Bengal.
Earlier this year, Kolkata-based biscuit manufacturer Anmol Industries also filed draft prospectus for IPO and received regulatory approvals in September.