Burger King’s Rs 810 crore IPO opens next week; check issue price, size, other details

Burger King has undertaken a pre-IPO placement by the use of a Rights Issue to Promoter Selling Shareholder value Rs 58 crore and a preferential allotment value Rs 91.92 crore.

The a lot awaited Burger King preliminary public providing (IPO) will open for subscription next week on December 2 and can shut on December 4. The US-based fast-food main’s India unit is providing shares to buyers within the value band of Rs 59-60 per share in rather a lot dimension of 250 shares and multiples thereafter. The minimal funding that one could make for the issue shall be Rs 15,000 on the higher finish of the value band. Burger King had earlier in January acquired SEBI’s nod to drift its IPO.

Issue details

The enlarged public issue of Rs 810 crore, consists of a recent issue of Rs 450 crore and an Offer for Sale (OFS) of 6 crore fairness shares by present shareholders. The promoter promoting shareholder QSR Asia may collect Rs 360 crore from the OFS on the larger finish of the value band. Pre-offer QSR Asia holds 28.93 crore fairness shares or 94.34% of the whole share capital. Burger King had earlier in October filed an addendum to the DRHP with SEBI the place it had elevated the recent issue dimension to Rs 600 crore from the Rs 400 crore it had earlier deliberate in January.

Not lower than 75% of the issue shall be reserved for Qualified Institutional Buyers (QIB) whereas solely 15% shall be reserved for Non-Institutional Investors (NIIs) and merely 10% for retail buyers. Ahead of the general public issue, Burger King has undertaken a pre-IPO placement by the use of a Rights Issue to Promoter Selling Shareholder value Rs 58 crore and a preferential allotment value Rs 91.92 crore which has introduced the recent issue dimension to Rs 450 crore from Rs 600 crore.

Peer comparability

Burger King is the second largest quick meals model globally with a worldwide community of over 18,000 eating places in additional than 100 international locations. “Burger King is growing rapidly in India, revenue of the company increased from Rs 230 crore in financial year 2017 to Rs 633 crore in financial year 2019. On the other hand, the company has reduced its losses from Rs 72 crore to Rs 38 crore between the same time period,” stated Keshav Lahoti, Associate Equity Analyst, Angel Broking.

However in comparison with Jubilant FoodWorks, the corporate that runs the well-known Domino’s Pizza chain, Burger King nonetheless has some catching as much as do. “We believe Burger King won’t get such a premium valuation as Jubilant Foodworks as it does not have a profitability track record like Jubilant, its outlets are young and we believe majority of the Indian people prefers Jubilant – Pizza over burger sold by Burger King,” he added.

Objectives of the issue

With the recent issue receipts, Burger King plans so as to add extra company-owned shops to its portfolio. According to the addendum filed in October, Burger King had 261 shops on the finish of the second quarter of this fiscal. By 2026, Burger King plans to open at the least 700 eating places. Burger King may also use the fund towards compensation or prepayment of excellent borrowings.

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