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MUMBAI : Quick service restaurant chain Burger King India Ltd on Friday set a price band of 59-60 per share for its 810 crore initial public offering (IPO) opening on 2 December.

The company will sell new shares worth 450 crore to the public, while promoter entity QSR Asia Pte Ltd, owned by private equity firm Everstone Group and its limited partners, will sell up to 60 million shares worth 360 crore at the upper end of the price band. Post the IPO, the promoter entity will hold 52.9% in the company.

Burger King India said in its red herring prospectus that it will use the funds to repay existing debt and finance capital expenditure for new company-owned stores.

The company has raised pre-IPO funding of 92 crore from public markets investor Amansa Investments at 58.5 per share. Burger King India said it holds a master franchisee arrangement, which provides it with the flexibility to tailor its menu to Indian tastes, as well as decide on promotions and pricing.

The IPO comes at a time of a new wave of covid infections in some states, raising concerns that local authorities might impose new restrictions. Most Burger King outlets in India are now open.

Shifting demand from the unorganized sector to the organized and easing real estate prices will open up opportunities for the company, which is well-financed and has a good team in place, CEO Rajeev Varman said.

The company was close to launching its IPO in March when covid derailed its plans.

For the first six months of fiscal 2021, Burger King India’s sales from food and beverages stood at 134.6 crore, down sharply from 419.3 crore in the same period last fiscal.


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