Burger King's IPO: The price band has been fixed at ₹59-60 per share
Bids can be made for a minimum of 250 equity shares
The IPO of quick service restaurant (QSR) chain Burger King opened today and was 1.5 times subscribed by 12:30 pm today. The price band of the Burger King's initial public offering (IPO) has been fixed at ₹59-60 per share. The ₹810 crore issue will close on 4th December. The company has reserved up to 10% portion of IPO for retail investors, up to 15% for non-institutional investors and up to 75% for qualified institutional investors.
1) Lot size: Bids can be made for a minimum of 250 equity shares and in multiples of 250 equity shares thereafter.
2) Burger King IPO comprises a fresh issue of shares amounting to ₹450 crore, while promoter entity QSR Asia Pte Ltd will sell up to 6 crore shares, aggregating to ₹360 crore.
3) The funds raised will mainly be utilised for expansion of company-owned stores across the country and paying off of debts.
4) Kotak Mahindra Capital Company Limited, CLSA India Private Limited, Edelweiss Financial Services Limited and JM Financial Limited are the book running lead managers to the Offer.
5) Link Intime India Pvt Ltd is the registrar of Burger King IPO and will manage allocation and refund.
6) Indicative IPO process timeline: Burger King share are proposed to listed on BSE and NSE. Share allotment is likely to be finalized on 9th December and listing may happen on 14th December 2020, according to brokerages.
7) As the national master franchisee of the Burger King (global) brand in India, the company has exclusive rights to develop, establish, operate and franchise Burger King branded restaurants in the country.
8) In May 2020, Burger King by way of right issue had undertaken a pre-IPO placement. It allotted 13.2 million shares to the promoter selling shareholder at a price of Rs. 44 per share aggregating to Rs. 58 crore. In another pre-IPO placement in November 2020, the company has raised ₹92 crore through preferential allotment of 15.7 million equity shares to Amansa Investment Ltd. at a price of Rs. 58.5 per share.
9) As a result, the fresh issue size has been reduced to ₹450 crore from ₹600 crore earlier.
10) Currently, Burger King has 268 stores, of which 8 are franchise mainly located at airports and the rest are company-owned. (With Agency Inputs)
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