Mrs. Bector’s Food Specialties, supplier of buns to McDonald’s and maker of Cremica brand of biscuits, plans to list on the stock exchanges by the end of next calendar year, two sources familiar with the development told Moneycontrol.
The issue will mostly likely be only a secondary sale by existing investors and is expected to target raising between Rs 500 crore and Rs 600 crore, one of the sources said.
The company has appointed Edelweiss Financial Services, IIFL and Motilal Oswal Financial Services as merchant bankers to the initial public offering.
Private equity company CX Partners holds 30 per cent stake in the company and will participate in the IPO though it hadn’t yet made its choice on selling the entire stake or retaining some, sources said. Another PE -- Gateway Partners -- is also an investor in the company, holding around 17 percent stake.
“The IPO will most likely comprise sale of shares by existing investors only with any fresh raising of equity highly unlikely as the company is cash-rich and doesn’t need funds for expansion,” one of the sources said.
Mrs. Bector’s traces its origins to Rajni Bector, 78, who was fond of cooking and would make and supply food for personal and local gatherings. The business, established in Ludhiana in 1978, grew but underwent a split amongst her three sons in 2013.
Mrs. Bector’s Food Specialties Ltd is run by the eldest and youngest of three brothers, Ajay and Anup Bector, respectively. Cremica Foods, formed as a result of the split, is run by Akshay Bector. Rajni Bector is no longer involved in day-to-day business of either of the companies.
Bector’s is present in both B2B and B2C segments. Its client list includes KFC, Starbucks, Cafe Coffee Day, Domino's Pizza and Jet Airways. The company has a well entrenched distribution network in north India, particularly Delhi, Punjab, Jammu & Kashmir, Himachal Pradesh and Haryana and is known for high-quality biscuits, cookies, pastes and sauces.