Biscuit maker Mrs Bectors Food Specialities has received markets regulator Sebi”s go ahead to raise Rs 550 crore through an initial share-sale.
The IPO comprises fresh issuance of shares worth Rs 50 crore and offer for sale to the tune of Rs 500 crore by existing shareholders, according to the draft red herring prospectus (DRHP) filed with Sebi.
Linus Private Limited, Mabel Private Limited , GW Confectionary Pte Ltd and GW Crown Pte Ltd will be offering stocks in the initial share-sale.
Mrs Bectors Food, which had filed preliminary papers for IPO in October, obtained Sebi”s observation on November 19, an update with the Securities and Exchange Board of India (Sebi) on Monday showed.
Sebi”s observation is necessary for any company to launch public issues like initial public offer, follow-on public offer and rights issue.
Net proceeds of the issue would be utilised for financing the project cost towards expansion of the Rajpura manufacturing facility by establishing a new production line for biscuits and for general corporate purpose.
In addition, the company aims to achieve the benefit of listing on the stock exchanges.
SBI Capital Markets, ICICI Securities and IIFL Securities will manage the company”s initial public offer (IPO).The equity shares will be listed on BSE and NSE.
Mrs Bectors Food manufactures and markets a range of products such as biscuits, breads and buns.
It markets a wide variety of biscuits and bread under the flagship brand “Mrs Bector”s Cremica” and the “English Oven” respectively.
Earlier in 2018, the company had filed draft papers with Sebi seeking to raise Rs 800 crore through IPO and had obtained the regulator”s approval to float the public issue.
However, the company could not launch the initial share-sale due to averse market conditions, merchant bankers said.