Mrs Bectors Food shares grey market premium surges 75% amid volatile stock market; check listing day strategy

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According to an analyst after a recovery in broader market and post declaration of allotment status, Mrs Bectors Food Specialities IPO is expected to list with a hefty premium

Mrs Bectors Food Specialities shares are scheduled to make a stock market debut today, December 24, 2020. The Rs 540-crore IPO was subscribed a whopping 197.38 times, becoming the most subscribed issue of 2020 so far. The company is the largest supplier of buns in India to QSR chains such as Burger King, McDonald’s, KFC, Carl’s Jr, Pizza Hut and Dominos Pizza. It sells its premium bakery products under ‘English Oven’. Mrs Bectors Food came up with its public issue following the successful listing of Burger King India which was listed with a 92 per cent premium to its issue price of Rs 60. In the grey market, Mrs Bectors Food Specialities shares were last seen trading at Rs 503 apiece, implying a premium of Rs 215 or 75 per cent over the IPO price of Rs 288 apiece. 

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Mrs Bectors listing day shares

Mrs Bectors’ numbers over the last few years have not been that good. Amarjeet Maurya, AVP – Mid Caps, Angel Broking Ltd told Financial Express Online, that the first half performance was good as compared to the first half of the previous fiscal because the consumption of bread, biscuits and other bakery products increased. Consumption was also high for Britannia Industries. Overall the business model is good with a healthy market share in North India and in exports as well. “As an investor, if I get more than 50-60 per cent return, I would book profits and wait for a correction in the stock and then invest again. We are expecting that Mrs Bectors Food Specialities might get good multiples although not as high as other listed peers like Britannia Industries and Nestle India,” Maurya said.

Manan Doshi, Co-Founder, UnlistedArena.com dealing in Pre-IPO & Unlisted Shares, told Financial Express Online, after the recovery in broader market and post declaration of allotment status, Mrs Bectors Food Specialities IPO is expected to list with a hefty premium of 75-85 per cent which implies the listing of shares above Rs 500 mark. 

While Vishal Wagh, Head of Research, Bonanza Portfolio Ltd, told Financial Express Online that investors should opt listing gains amid share market volatility. “We expect near to 10-15 per cent listing gains due to high market volatility. Any follow up selling in market may lead to early profit booking,” Vishal Wagh said. 

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