Mrs Bectors Food Specialities Ltd has successfully raised Rs 400 crore through a Qualified Institutional Placement (QIP) of equity shares, the company said in a late-evening stock exchange filing on Monday, 9 September.
Among the major investors in Mrs Bectors -- the maker of English Owen bread and Cremica biscuits -- the Government of Singapore bought nearly one-fifth of the issue for about Rs 74 crore.
The company’s Fund Raise Committee approved the issuance and allotment of 25.8 lakh equity shares at Rs 1,550 per share. Mrs Bectors Food’s QIP issue price represents a discount of 1.77 percent to the floor price of Rs 1,577.85 per share, and a discount of nearly 10 percent to Monday’s closing price of Rs 1,714.8.
Mrs Bectors Food said the QIP received strong interest from institutional investors and closed on September 9. The proceeds from the QIP will be used to strengthen the company’s capital base.
Following the allotment, the company’s paid-up equity share capital has increased from Rs 58.82 crore to Rs 61.4 crore. Mrs Bectors Food’s market capitalisation stands at over Rs 10,000 crore as of the last close.
Among the institutions allocated more than 5 percent of the shares in Mrs Bectors’ QIP issue were the Government of Singapore (18.49 percent), Arisaig Asia Fund (9.12 percent of the issue for about Rs 36.5 crore), and Prudential Assurance Company (8.39 percent for about Rs 33.5 crore).
Other major investors in the QIP included Manulife Global Fund (5.54 percent), DSP Mutual Fund (6.25 percent), Aditya Birla Sun Life Mutual Fund (6.25 percent), Canara Robeco Mutual Fund (6.25 percent), Invesco India Mutual Fund (5.75 percent), SBI Multicap Fund (6.25 percent), Axis Mutual Fund (6.25 percent), and Nordea’s Indian Equity Fund (5.71 percent).
Mrs Bectors’ share price fell as much as 5 percent on Monday to Rs 1,714.8 ahead of the QIP allotment. The stock has risen more than 52 percent so far this year since January, far outpacing the Nifty’s 15 percent gain during the same period.
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