On Mrs Bectors IPO
Investors should not confuse Mrs Bectors with Britannia. It is a B2B business. It does not have such strong brands or that kind of flavour as far as the company is concerned for it to get multiples is equivalent to FMCG businesses. Lot of their brands are clearly unknown and then there are institutional sales and exports which are not as profitable as the branded business. Despite being around for decades, they have been able to grow the branded business.
Britannia has done a fabulous job over the last 10 years despite being a laggard to the market leader Parle. Also Mrs Bectors valuations are on the higher side, return ratios are nowhere comparable to the large FMCG companies and I would like to at least not go over and invest in Mrs Bectors on listing. But typically, because of liquidity flows and various dynamics in the IPO market, one does tend to see very sharp trading rallies on listing and then at least for the first few trading sessions after that and the