Burger King India IPO Reviews – The initial public offering (IPO) of Burger King India, a fast food restaurant chain, received subscription 3.13 times the issue size on the first day of bidding. The Rs 810-crore IPO received bids for 23.32 crore equity shares (3.13 times) against IPO size of 7.45 crore equity shares, as per the data available on stock exchanges.
Net proceeds from the fresh issue of shares will be utilized for funding the rollout of new company-owned Burger King Restaurants and for general corporate purposes.
The Retail investors portion have lapped up the IPO with their reserved portion subscribed 15.54 times on Day 1.
The portion set aside for non-institutional investors saw subscription of 0.71 times and that of qualified institutional investors 0.17 times.
The Burger India share sale, which will close on December 4, is being in a price band of Rs 59 to Rs 60 per share. Shares are available in a lot size of 250 shares and thereof. The company plans to raise Rs 810 crore through the share sale at the higher end of price band.
The offer comprises fresh issue of 7.5 crore shares amounting to Rs 450 crore, while the promoter entity QSR Asia Pte Ltd will sell up to 6 crore shares, aggregating to Rs 360 crore at the upper end of the price band.
Kotak Mahindra Capital Company, CLSA India, Edelweiss Financial Services and JM Financial are managers of the share sale. The company’s shares are proposed to be listed on the BSE and the NSE.
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- Allotment of shares will be done on December 9 and
- Shares of the firm are likely to be listed on December 14.
As of September 2020, the company had 261 restaurants including eight sub-franchised Burger King Restaurants across 17 states and union territories and 57 cities across India, as per the addendum to the draft red herring prospectus (DRHP).
Burger King India IPO Reviews
Angel Broking Ltd said, “In the last 6 years of operations in India, Burger King has opened 268 stores. Looking at the current run rate, we believe management will be able to achieve the target of 700 stores by Dec’26. As the store count will increase, operating leverage will kick in and the company will be able to report profit. We believe there is ample scope available for the company to increase its business in India.
Prabhudas Lilladher has given a ‘Subscribe’ outlook in its report on Burger King India and said, ” Despite being impacted by COVID-19, 249 out of 268 restaurants are operational with high standards of safety and hygiene protocols across its restaurants and has intensified focus on delivery, takeaways and drive-thru.
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The initial public offering (IPO) of Burger King India, a fast food restaurant chain, received subscription 3.13 times the issue size on the first day of bidding.
- Number of store will Increase
- Good Business Prospects
- operating leverage will kick in
- Proposed Profitability
- Price Band is Good