Mrs. Bector's Food IPO: Should you Subscribe?

Created on 14 Dec 2020

Wraps up in 5 Min

Read by 5.9k people

Updated on 16 Dec 2020

What do you think about when you are making an investment decision? What is it that makes you invest in a company? Sure, a strong financial track record and growth potential are key drivers of any investment decision. But a relatable story is what makes a difference.

Here's a company started by a woman with a passion for baking and spreading love, whose vision has now become a huge business venture known as "Mrs. Bector's Food Specialities Limited". On the heels of the jaw-dropping success of the Burger King IPO on 2nd December 2020, Mrs. Bector's Foods gears up to launch its Initial Public Offering next week. Here we take a closer look.

About Mrs. Bector's Food Specialities Limited

Turning her love for baking by whipping up delicious ice creams, breads, and biscuits, Mrs. Rajni Bector started a small enterprise in her backyard in 1978. With time, this little enterprise has grown into a global conglomerate that leads the non-glucose biscuits market and premium breads market segment in Northern India.

The company markets its wide range of products under well-known and well-established brand names "Mrs. Bector's Cremica" (biscuits such as cookies, creams, crackers, digestives, and glucose) and "English Oven" (bakery products in savoury and sweet categories which include breads, buns, pizza bases, and cakes).

Known for its quality, freshness, taste, globally certified production facilities, and unmatched expertise, the company supplies its products to retail consumers in 26 Indian states. Along with its pan-India presence, the company also provides its products to reputed international customers from 64 countries across six continents.

Here are some noteworthy facts about the company:

  • The flagship brand "Mrs. Bector's Cremica" leads the premium and mid-premium biscuit market segment in Punjab, Himachal Pradesh, Jammu & Kashmir, and Ladakh.
  • "English Oven" is the largest selling brand in the premium bakery market segment in Delhi NCR, Mumbai, and Bengaluru.
  • The company has established itself as a supplier for a number of reputed Quick Service Restaurant (QSR) chains as listed below:

QSR Chain

Relation with Mrs. Bector’s Food

Connaught Plaza Restaurants Pvt. Ltd.

Sole supplier of burger buns and pan muffins since 1995

Hardcastle Restaurants Private Limited (McDonalds India)

Preferred supplier of burger buns and pan muffins, for nearly 13 years

Burger King India Limited

Main supplier of burger buns since 2014

Yum! Restaurants (India) Private Limited

Main supplier of burger buns since 2013

PVR Limited

Preferred and main supplier of frozen burger buns, garlic bread and panini

A look at the financial performance of the company: (figures in ₹ crores)


FY 2016

FY 2017

FY 2018

FY 2019

FY 2020









Net Profit







As seen from the above data, the company has been steady generating revenue over the years. In the light of the COVID-19 pandemic, the revenue of the company decreased during the FY 2020 compared to FY 2019; however, it was able to report comparably healthier profits. The revenue of operations of the company from April to September stood at ₹ 438.5 crores which is up by 18.2% from previous year.

A look at how the company fares in the market:

The company has established itself as one of the leading brands in biscuits and bakery products industry in Northern India. In a ₹ 38,000 crores domestic biscuits industry, the company holds a 1% market share.

It is the leading exporter of biscuits in India, occupying an approximate share of 12% of the total biscuits exports in the calendar year 2019.

Valuation of the Company for the FY 2020:

Valuation Parameter

FY 2020

Price / Earnings Ratio (P/E Ratio)


Earnings Per Share (EPS)


Net Asset Value (NAV)


Return on Net Worth (RoNW)


SWOT Analysis:


  • The company has a diversified portfolio of well-established brands of medium and premium products.
  • A leader exporter of biscuits with major quality certifications which help in the acceptability of the products of the company in quality conscious export markets.
  • A leading supplier of buns to the fast-growing QSR industry as already discussed earlier.
  • The company has a wide-spread and established sales and distribution network not just across India, but across 64 countries spread over six continents.


  • Lack of brand awareness among the general public out of Northern India.
  • Dependence on retailers and small grocery stores for the display of products on their shelves to induce customer buying.


  • The company already has an established pan-India distribution chain. Avenues are thus available to make the diversified products available to larger populations across the country.
  • The company has a strong export potential to reach its diversified portfolio of products to customers worldwide.


  • The company faces fierce competition from local and national brands and struggles to hold onto a market share.
  • The demand for the company's products in rural areas has seen a decline.

Mrs. Bector's Food Specialities Limited IPO Details:

IPO opens on

15th December, 2020

IPO closes on

17th December, 2020

Issue Price

₹ 286 – 288 per equity share

Face Value

₹ 10 per share

Minimum lot size


Market lot


Minimum investment

₹ 14,400

Issue Size

₹ 540.54 crores (equity shares of ₹ 10 each)

Fresh issue

₹ 40.54 crores (equity shares of ₹ 10 each)

Offer for sale

₹ 500 crores (equity shares of ₹ 10 each)

Issue type

Book built issue IPO

Listing at?


Lead managers of the issue

ICICI Securities Limited, SBI Capital Markets Limited and IIFL Securities Limited

A (Tentative) Timeline for Mrs. Bector’s Food Specialities Limited IPO:

IPO opens on

15th December, 2020

IPO closes on

17th December, 2020

Finalization of basis of allotment

On or before 22nd December, 2020

Initiation of refunds

On or before 23rd December, 2020

Credit of equity shares

On or before 24th December, 2020

Listing date

On or before 28th December, 2020

Objectives of the IPO

Mrs. Bector's Food Specialities Limited has expressed its intention to utilize the net proceeds from the fresh issue for financing the project costs of the "Rajpura Expansion Project" which is an expansion of its Rajpura Manufacturing Facility by establishing a new line of biscuits.

 Risks associated with the IPO

  • The COVID-19 pandemic continues to prevail, and its effect on the company's business and operations is highly uncertain and unpredictable.
  • The company could face a drop in demand for its products if it fails to anticipate, respond to and meet the tastes and preferences of its customers and successfully adapt to dynamic market changes.
  • It is worth noting that the biscuits and bakery products industry is a capital-intensive industry and Mrs. Bector's Foods is already indebted in this regard and may incur further debts which would expose it to interest rate fluctuations.
  • The company is heavily involved in exports and is inherently exposed to foreign currency exchange rate fluctuations.

Final thoughts – Is it worth investing?

Times are uncertain in the light of the ongoing COVID-19 crisis. And during such times, companies such as Mrs. Bector's Food Specialities Limited have been able to keep afloat and show resilience. However, it is not possible to make predictions about whether the issue is overvalued or undervalued. 

Optimistically looking at the growth potential and a strong financial record, investors can invest in this issue expecting future gains. The company's tagline reads "baked with love, just for you!" Are you ready to invest in its future and feel love?

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