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BENGALURU, Dec 24 (Reuters) - Shares in Indian biscuit maker Mrs Bectors more than doubled in their stock market listing on Thursday, the latest company to cash in on a rally fuelled by an improving economic outlook and record inflows from foreign money managers.
The initial public offering (IPO) was nearly 200 times oversubscribed and comes as India’s main stock indexes have climbed 17% since the start of November on signs of a faster recovery from the coronavirus-induced slump and positive news around COVID-19 vaccines.
“India’s story is getting strength because the rebound has been very good, and the government has been using the (COVID-19) crisis to kind of unleash the next wave of reforms,” said S Krishnakumar, chief investment officer at Sundaram Asset Management in Chennai.
Many foreign investors also view India as a suitable alternative to China at a time when Chinese companies have come under increasing scrutiny in the West, Krishnakumar added.
Indian shares have attracted over $20 billion of foreign money so far this year, according to Refinitiv Eikon data, the highest in eight years.
At over a dozen, local listings this year nearly match those from 2019 despite a lull during the height of the COVID-19 crisis.
Gland Pharma and Burger King India both made strong debuts, while Antony Waste Handling Cell’s IPO has been oversubscribed nearly four times before closing on Wednesday.
Mrs Bectors Food Specialities Ltd, which makes cookies, creams and crackers under the “Cremica” brand, as well as breads, buns and cakes, raised about $73 million in the offering.
Shares opened at 500 rupees, well above the offering price of 288 rupees apiece. At session high, Mrs Bectors was valued at $479 million.
For fiscal 2020, it reported bit.ly/2WKQdS4 an 8.3% fall in profit to 304 million rupees, while revenue slipped 2.8% to 7.62 billion rupees.
$1 = 73.6200 Indian rupees Reporting by Anuron Kumar Mitra in Bengaluru; Editing by Aditya Soni, Uttaresh.V and Sriraj Kalluvila