Mrs. Bectors Set to Raise a Massive ₹400 Cr Through Exclusive QIP

Mrs Bectors Food Specialities Ltd, the company behind the Cremica brand of biscuits and cookies, has initiated a qualified institutional placement (QIP) to strengthen its financial standing and support its expansion goals, as reported by CNBC-TV18 sources.

As of 9:20 am IST on September 6th, the Mrs. Bectors shares were trading up by nearly 2%, reaching ₹1,645 each.
Through the QIP, Mrs Bectors aims to raise up to ₹400 crore, with the shares being offered at an indicative price of ₹1,550 per share. This price represents a discount of 3.9% compared to Thursday's closing price of ₹1,609 and is 1.8% below the floor price, resulting in an equity dilution of approximately 4.4%.

The capital raised through this initiative will be utilized for several key purposes.

A portion of the funds will go towards repaying and prepaying certain outstanding debts, helping the company reduce its liabilities and improve its balance sheet.

Additionally, Mrs Bectors will channel some of the funds into its subsidiary, Bakebest Pvt. Ltd, to support the Khopoli Expansion Project, a key initiative aimed at boosting production capacity and enhancing operational efficiency.
Another significant part of the capital will be allocated to funding the Madhya Pradesh Project, which is vital to expanding the company's production capabilities and market presence.

The remainder of the funds will be used for general corporate purposes, contributing to the company’s overall growth and operational objectives.

ICICI Securities Ltd, along with other lead managers, will be responsible for managing the QIP process.
So far in 2023, Mrs Bectors’ stock has surged by nearly 43%, and has gained over 170% since its listing in December 2020, when it debuted at ₹501 on the BSE, significantly above its offer price of ₹288.

Mrs Bectors Food Specialities Ltd is an India-based company involved in the manufacturing and distribution of food products, catering to both domestic and international markets. It produces and sells a variety of biscuits including cookies, creams, crackers, digestives, and glucose under the Mrs. Bector’s Cremica brand. The company’s biscuit and bakery products are distributed across 28 states and four union territories in India and exported to 69 countries globally.

Its Bourbon, Crackers, and cream-filled biscuits are available in over 23 states through a network of 550,000 retail outlets. The company also manufactures bakery items in the sweet and savory segments, such as breads, buns, pizza bases, and cakes under the English Oven brand. Its subsidiaries include Bakebest Foods Private Limited and Mrs. Bectors English Oven Limited.