Mrs Bectors Food Specialities launches ₹400 crore QIP to support expansion plans

Mrs Bectors Food Specialities Ltd, maker of the Cremica brand of biscuits and biscuits, has announced the launch of a qualified institutional placement (QIP), aimed at improving the company’s financial position and funding its expansion plans, CNBC-TV18 sources said.

The company plans to raise up to ₹400 crores through this issue, with an indicative price of ₹1,550 per share. The price represents a 3.9% discount to Thursday’s closing price. ₹1,609 and 1.8% at the minimum price, which translates into a capital dilution of 4.4%.

Funds raised through the QIP will be allocated to several key areas.
A portion of the proceeds will be used to repay and prepay certain outstanding loans. The move will help strengthen the company’s balance sheet by reducing its debt obligations.

Mrs Bectors Food Specialities Ltd will invest in its subsidiary, Bakebest Pvt. Ltd, to fund the Khopoli expansion project. This investment is part of the company’s broader strategy to enhance its production capacity and streamline its operations.

Additionally, a significant portion of the funds will go towards financing the Madhya Pradesh Project, another crucial initiative aimed at expanding the company’s presence and production capabilities.

The remaining funds will be allocated for general corporate purposes, which will support the Company’s overall growth strategy and operational needs.

ICICI Securities Ltd along with other lead book-running managers will oversee the QIP process.

So far this year, the value is up almost 43%, while the stock is up more than 170% since the end of December 2020, when it was listed at ₹501 on the BSE against the offer price of ₹288, with a premium of more than 70%.