McDonald’s and Burger King supplier Mrs Bectors Foods files for a Rs 550 crore IPO

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Premium biscuit-maker and supplier to fast-food chains like McDonald’s and Burger King, Mrs Bectors Food Specialities, has filed a draft red herring prospectus (DRHP) with Securities and Exchange Board of India (SEBI) to raise nearly Rs 5,50 crore via an Initial Public Offering (IPO).

This is the Ludhiana-based firm’s second attempt at an IPO. It made an attempt in 2018 and had secured SEBI’s approvals but chose to defer the plans. The move now comes on the back of a sharp surge in the demand for packaged food items during the lockdown.

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’.

Mrs Bectors is backed by private equity funds CX Partners and Gateway Partners. Both PE firms plan to make a partial exit through the proposed IPO. The promoters hold 52.45 per cent stake, while the private equity investors CX Partners and Gateway own 46.75 per cent stake.

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 said in its filing with the regulator.

“Mrs Bector’s has six manufacturing facilities located in Phillaur and Rajpura (Punjab), Tahliwal (Himachal Pradesh), Greater Noida (Uttar Pradesh), Khopoli (Maharashtra) and Bengaluru (Karnataka) and this spread ensure standardization of products and access to pan India chains,” added a second individual.

Both individuals spoke to Moneycontrol on the condition of anonymity.