As the initial public offering (IPO) of Mrs Bectors Food Specialities concluded on Thursday, it garnered 199.41 times subscription, making it the most successful issue in 2020. It beat Mazagon Dock Shipbuilders and Burger King, the other two IPOs that saw big subscriptions that received nearly 157 times subscription each.
As per data from the stock exchanges, Mrs Bectors IPO received bids worth more than Rs 40,000 crore.
The massive oversubscription is likely due to the successful debut of Burger King India, whose shares have tripled in value since listing. Wealthy investors flocked to bet on similar listing gains with high networth individual (HNI) portion seeing 620 times more demand than shares on offer.
The qualified institutional buyer (QIB) portion was subscribed 177 times and retail category saw nearly 30 times subscription.
Brokerages were also positive on the IPO. Angel Broking feels that Mrs Bectors attractive valuation drew investors. It said that peers such as Britannia, Nestle India and Prataap Snacks are trading at trailing price-to-earnings multiples of 50.2, 85.6, and 57.1 times, while Mrs Bectors is priced at trailing P/E of 27.9 times.
Anand Rathi recommended a ‘Subscribe’ rating on the stock for listing gains as well as the long term.
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