A leading company in the premium and mid-premium biscuits segment and bakery segment in North India. Manufacturer of range of biscuits like cookies, creams, crackers, digestive and glucose types under the brand of ‘Mrs. Bector’s Cremica’. Also, manufacturer of bakery products like bread, pizza, buns, bases and cakes under the brand of ‘English Oven’. The supply of products is across 26 states in India and to 64 countries across six continents (in the financial year ending March 2020).

Key strengths:

1. One of the leading biscuits and bakery brands in North India
2. Established presence in retail and institutional bakery business
3. Automated production process and established sales and distribution network
4. Experienced management team

Amount in Rs Cr

• Current ratio of 1.7X as at Sep’20 is good
• Growing revenues
• Stable gross margin and strong EBITDA
• Improving profit after tax (%) margins
• Strong return on capital employed

Offer for Sale and Deployment of Net Proceeds

Fresh issue proceeds are expected to be utilized for Rajpura project expansion

Quick IPO Fact SheetConclusion ideas:

• Fast growing manufacturer of biscuits and bakery items, primarily in North India
• Company operates in high growth segment and amongst companies that enjoy high PE multiples
• In its segment and amongst the listed peers, the company competes with the likes of Nestle, Britannia Industries, Pratap Snacks and DFM Foods
• Branded packaged food industry is growing significantly in India
  • Biscuits and bakery sub-segment is expected to grow low double-digit
• Emergence of modern retail and online grocery delivery platforms will aid sales

All the above information is based on the red herring prospectus filed by the company with Securities and Exchange Board of India (www.sebi.gov.in). Due diligence has been taken to ensure correctness of the information presented above. We, however, recommend the reader to validate any information before taking any financial decision. Also, investment in initial public offering (IPO) is subject to market risks and should be evaluated keeping in mind your risk profile and investment objective. Author will not be responsible for any financial loss or otherwise resulting from any action taken based on the above.

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