Good analysis of UTI AMC IPO…
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Burger King & McDonald’s Supplier Mrs Bectors Foods May Launch Rs 540 Crore IPO Next Week
This is the Ludhiana-based firm’s second attempt at an IPO. The IPO is being driven by the private equity investors CX Partners and Gateway Partners, which are seeking a partial exit.Premium biscuit-maker and leading supplier of buns to fast-food chains like Burger King and McDonald’s, Mrs Bectors Food Specialities, is preparing up to launch its initial public offering (IPO) next week, people with knowledge of the matter told Moneycontrol.
The move comes close on the heels of the Burger King IPO, which opened on December 2, satiated the palate of investors in all categories and was oversubscribed a jaw-dropping 157 times.
“As of now, the firm is planning to launch the IPO on December 15th after having received a speedy approval from Sebi in 29 days. Perhaps, the fastest for a non-PSU IPO in recent years,” said one of the persons cited above.
This is the Ludhiana-based firm’s second attempt at an IPO. It made an attempt in 2018 and had secured SEBI’s nod but chose to defer the plans due to market conditions.
“The financial performance of Mrs Bectors Food Specialities has been impressive in the last few months despite the initial impact due to the pandemic and the subsequent lockdown. The firm clearly wants to ride the ongoing momentum in the capital markets and take advantage of the attractive valuations in the food segment,” this person added. Recently, the Sensex had hit 45,000 for the first time.
“The IPO is being driven by the private equity investors CX Partners and Gateway Partners who are seeking a partial exit. The OFS ( offer for sale) component is for Rs 500 crores and due to better valuations , the fresh issue of shares component has now been reduced slightly to around Rs 40 crores,” a second person told Moneycontrol.Both the persons spoke to Moneycontrol on the condition of anonymity. Moneycontrol is awaiting an email response from Mrs Bectors Food Specialities and has sent reminders. This article will be updated when we hear from the firm.
Initially, the fresh issue of shares as per the DRHP was for Rs 50 crore. Moneycontrol was the first to report the filing of the firm’s DRHP on October 20, 2020. The proceeds of the IPO will be used for growth capital linked to the firm’s manufacturing unit at Rajpura, Punjab and for general corporate purposes.
The company manufactures and markets a range of biscuits under its flagship brand ‘Mrs Bectors Cremica’ and its bakery products under the brand ‘English Oven’. ITC & Britannia are the firm’s key listed peers in the biscuits and bakery products segment while other branded rivals include Parle, Modern and Harvest Gold.
SBI Capital, ICICI Securities and IIFL Capital are the merchant banks working on the IPO, according to the DRHP. Law firm Shardul Amarchand Mangaldas is the legal advisor to the company and the banks and AZB & Partners is the legal advisor to Gateway Partners.
Dough you know!
According to the documents filed with SEBI, Mrs Bectors Food Specialities is the largest supplier of buns in India to leading QSR (quick service restaurant) chains such as Burger King , McDonalds, KFC and Pizza Hut. It has also ventured into the frozen dough segment where it competes with rival vendor Baker’s Circle, which has the largest market share.As of March 31, 2020. The firm’s revenues stood at Rs 762 crore with the profit after tax at around Rs 30 crore. A report dated 24th May, 2019 by ratings agency ICRA indicated the liquidity position of Mrs Bectors.
“Despite sizeable capex, the liquidity profile of the company remains adequate as the business has inherently low working capital intensity and the cash flow generation remains strong,” it said.
The Indian biscuits and bakery retail market is valued at $7 billion and is expected to grow at a CAGR (compounded annual growth rate) of approximately 9 percent over the next five years. Biscuits and other snacking bakery products such as rusks, wafers and tea cakes contribute nearly 89 percent to the total market share and the balance 11 per cent is contributed by breads including loaves, buns and pizza bases.
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Mrs. Bectors Food Specialities’ Rs 541 crore IPO is set to open on December 15, and the price band for the same is set at Rs 286-288 a piece.
Specialty chemicals firm Laxmi Organics files DRHP for Rs 800-crore IPO
Updated : December 16, 2020 02:11 PM IST
The Mumbai-based firm has filed the draft red herring prospectus (DRHP) with the market regulator Sebi for its public issue.
The IPO of Laxmi Organics come after specialty chemical firms like Rossari Biotech and Chemcon Specialty Chemicals went public.
Started in 1992, the firm is the largest manufacturer of ethyl acetate in India.
Specialty chemicals firm Laxmi Organics files DRHP for Rs 800-crore IPO
Pranati Deva
PRANATI DEVA
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Specialty chemicals firm Laxmi Organics is likely to be the latest entrant in the IPO market. The Mumbai-based firm has filed the draft red herring prospectus (DRHP) with the market regulator Sebi for its public issue.
The Rs 800-crore initial public offering (IPO) will consist of a fresh issue of Rs 500 crore and an offer for sale (OFS) of Rs 300 crore by promoter Yellow Stone Trust.
The IPO of Laxmi Organics come after specialty chemical firms like Rossari Biotech and Chemcon Specialty Chemicals went public. These were subscribed almost 80 times and 149 times respectively.
The firm is a leading manufacturer of Acetyl Intermediates and Specialty Intermediates and the largest manufacturer and exporter of ethyl acetate from India. It has appointed Axis Capital and DAM Capital Advisors as the managers to the issue.
As per the filing, the net proceeds from the issue will be utilised for setting up a manufacturing facility for fluorospecialty chemicals, requirements of working capital, purchase of plant and machinery and prepayment or repayment of all or a portion of outstanding debt.
Started in 1992, the firm is the largest manufacturer of ethyl acetate in India. It has a diverse product portfolio and a market share of approximately 30 percent of the Indian ethyl acetate market and approximately 55 percent of the diketene derivatives market.
The company caters to major names like Alembic Pharmac, Dr Reddy’s, Hetero Labs, Laurus Labs, Neuland Labs, Suven Pharma, Granules India, UPL, and Sudarshan Chemicals.
In 2012, International Finance Corporation acquired a 10.05 percent equity stake, which the company bought back in January 2020 for Rs 82.01 crore.
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Competitors :
Jubliant Lifesciences : https://www.jubl.com/Uploads/image/1307imguf_JLL-InvestorPresentationNov42019.pdf
Leading producer of Acetic Anhydride and Ethyl Acetate, which have applications in Pharma, Agro, Drugs, Dye sectors Large scale ethanol producer; Ethanol used in Advanced intermediates and Life science chemicals business. One of the largest suppliers of Ethanol to
http://www.kanoriachem.com/our-business-2/chemicals/acetaldehyde.html
There Are many fuel grade ethanol manufacturers
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Excellent reports on Bector food. somehow missed it. gave great returns to those who were lucky to have bought in pre open.
Keep up the good work of posting summary abt upcoming IPOs from good cos.
Whats your view on Stovecraft.Indigo Paints,Herenba industries & Anupam rasayan. Hope they leave something on table for investors.
For Indigo paints, I had started this separate VP thread:Indigo Paints: Upcoming Star
tl;dr One para Investment Thesis: Indigo is the fifth largest paints manufacturing company with 2% market share. It is growing at quite a steady and fast pace, based on differentiated and innovative products (metallic emulsions, ceiling and floor paints, cement paints), high brand building & Ads spending, and differentiated business strategy: while top players started with metro cities and are now expanding to tier 3 and 4 towns, indigo has solidified their presence to some extent in smaller towns & villages and are now looking to expand to tier 1 and 2 cities. Company is able to successfully create demand for and sell their products, creating, expanding and utilizing larger manufacturing capacities (in fact all proceeds of Fresh IPO issue will go to capacity expansion). Given the very small size (2% market share) compared to opportunity size, high industry growth (10-13%), very high company growth (20%+) and reasonable valuations (6x EV/sales), Indigo is a reasonable investment candidate as per available information.
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Anupam Rasayan files for ₹ 760 crore initial float
Suratbased specialty chemicals player Anupam Rasayan Ltd on Thursday announced the filing of draft redherring prospectus (DRHP) with market regulator SEBI to raise ₹760 crore through an IPO.
The company will use the issue proceeds for repayment of debt. It may consider a discount
for staffers bidding for the employee reservation portion of the issue, an official statement
said.
Axis Capital, Ambit, IIFL Securities and JM Financial have been
appointed as the bankers to the issue.
Anupam’s revenues grew at a CAGR of 24.29 per cent from FY18 to FY20 and its EBITDA for FY20 stood at ₹134.90 crore. Half yearly revenues (April-September) grew 51.51 per cent, from ₹234.40 crore to ₹355.12 crore on a year on year basis, despite the Covid19 pandemic.
The company has six multipurpose manufacturing facilities in Gujarat—at Jhagadia and
Sachin near Surat—with combined aggregate installed capacity of 23,396 tonnes, of which
6,726 tonnes was added in March 2020.
Anupam had started operations in 1984 with conventional products. Now it makes specialty chemicals involving complex processes such as etherification, acylation, cyclisation,
diazotisation and hydrolysis, it said.
It caters primarily to the agrochemical, personal care and pharmaceutical sectors, which
accounted for 95.37 per cent of its revenues in 2019-20. Its clients include Syngenta, Asia Pacific, Sumitomo Chemical Company and UPL, across Europe, Japan, the US and India, it added.
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I was wondering that for HNI/NII category, in case of oversubscription, would each investor get shares in proportion to oversubscription in that category, or oversubscription overall?
In this case, when one applies from NII category for (say) x lots, would they get x/5.38 lots or x/7.38 lots?
HNI/NII category investors will get allotment pro rata based the over subcription times. But RII category will get minimum lot thro a drawal of lot .irrespective of the number of shares they applied and number of times over subscription.
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Right, my question is: is it inversely proportional to the oversubscription in the segment (5.38) or to the overall oversubscription (7.38)?
Logically it should be based on over all subscription as there is no reservation for any particular catagory. Of course RII have reservation and allotment will be decided among RII by drawal of lots (PRGS) subject to the reservation quota limit.
In case of HNI/NII minimum allotment is 1 lot and anything above will be proportionate basis. So in above case, say if the lot size is 10 shares, then any NII would get assured 1 lot if he/she applied for minimum 6 lots i.e. 60 shares. He/She may get additional shares based on the Category applied and Number of applications received in that category. Category here means “Quantity Multiples” - each quantity multiple is considered as a category within NII portion. You can refer to Basis of Allotment for any previous IPOs for better understanding. I have attached below the basis of allotment for recently concluded Burger King IPO. Thanks!
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REIT
Fresh Issue Size : 3,800 Cr
Number of Units : 13.87-13.81 Cr
Price Band : 274-275
Equity Value : 8,296.8 - 8,327 Cr
Yield : 7.95 - 7.98%
Suggestion don’t invest in a company if you are not confident of the numbers and don’t have a strategy and expectations with it, exit after the expectations are met or the or the numbers changes!!!
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Anyone tracking heranba ipo??
Views invited
LIC IPO - the largest IPO in Indian history
Decks are being cleared for the much-anticipated initial public offering of Life Insurance Corporation of India (LIC). If everything goes to plan the mega IPO may hit the market around Diwali this year (Q3 FY21).
LIC’s public issue is expected to be the country’s largest-ever and is pegged to be at least ₹1 trillion for just a 10% share sale to the public.
LIC is India’s largest financial institution with assets of over Rs 32 lakh crore. Currently the government owns a 100 per cent stake in LIC. The valuation process is underway for the insurance giant. Analysts peg the valuation of the insurer at around ₹ 10-12 lakh crore, making it India’s second most valued company after Reliance Industries, ahead of marquee names such as TCS, HDFC Bank and Infosys.
Up to 10 per cent of the LIC IPO issue size would be reserved for policyholders.
Though few quarters away, the IPO of LIC has already started to catch the attention of the market. Apart from the discussions on Valuation, Size and Time of the IPO, a report posted here says that CDSL could be a beneficiary of LIC IPO as people rush into open Demat accounts to apply under policyholder quota! Whether the buzz around LIC IPO is really worth it or just a hype only time will tell.
Personally I am feeling happy for the fact that my LIC policies are of some use for me which otherwise only intended to benefit my family when I am dead 
Thanks!
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Any views on Heranba Industries? Upcoming IPO