Burger King India shares surge, a day after stellar market debut1 min read . Updated: 15 Dec 2020, 09:44 AM IST
- Shares of Burger King India had zoomed nearly 131% in the previous session against its issue price of ₹60.
Burger King shares surged 16% today to ₹160, a day after more than doubling in price on the listing day. In a remarkable market debut, shares of Burger King India on Monday zoomed nearly 131% against its issue price of ₹60. After today's rise, Burger King shares are up about 166% as compared to its issue price. The market cap of Burger India has now zoomed to nearly ₹5,900 crore.
Burger King's market debut on Monday was best since 2017 when Astron Paper & Board Mill Ltd. jumped 142%.
With restaurants open for business post-lockdown and vaccines in sight, investors are betting that customers will soon be thronging fast food chains. Burger King India's share sale was subscribed a massive 156.65 times earlier this month. The price range for the ₹810-crore initial public offering (IPO) was fixed at ₹59-60 per share.
The quick-service restaurant chain currently operates 268 stores in India and out of them, eight are franchises, mainly located at airports, while the rest is owned by the company.
The company’s franchisee agreement with Restaurant Brands International Inc. allows it to use the Burger King brand in India until 2039.
The 4%-5% royalty paid to Burger King is lower than the range paid by franchisees of most comparable quick-service restaurants in India, according to the company’s prospectus
Meanwhile, the IPO of bread and biscuits maker Mrs Bectors Food will open today. The price band in Mrs Bectors Food IPO has been fixed at ₹286-288 per equity share of a face value of ₹10 each. The company sells biscuits under the 'Cremica' brand and manufactures and markets a wide range of biscuits such as cookies, creams, crackers, digestive biscuits, and an array of premium breads under the 'English oven' brand.
Mrs Bectors Food is also a supplier of buns to quick-service restaurant (QSR) chains such as McDonald's, KFC, Burger King and Carl's Jr among others.
(With Agency Inputs)
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