Burger King IPO subscribed nearly 5 times on day 2 so far1 min read . Updated: 03 Dec 2020, 01:12 PM IST
- Burger King India IPO's reserve portion for retail investors subscribed 24.01 times, while the portion set aside for qualified institutional investors subscribed 0.25 times and that of high net-worth investors 1.2 times
NEW DELHI: The initial public offering of Burger King India, a quick service restaurant chain, was subscribed nearly five times till 12.20pm on Thursday, the second day of bidding.
The ₹810 crore IPO has received bids of 364.19 million against 74.49 million shares issued, according to NSE website. The issue was subscribed 4.89 times.
Reserve portion for retail investors was subscribed 24.01 times, while the portion set aside for qualified institutional investors subscribed 0.25 times and that of high net-worth investors 1.2 times.
Mumbai-based Burger King India, which currently operates 268 stores in India, has fixed the price band at ₹59-60 a share. The the three-day stake sale will end on Friday. The shares are likely to be listed on the exchanges on 14 December.
The IPO consists of a fresh issue of ₹450 crore and offer for sale of Rs360 crore by promoters. Private Equity firm Everstone Capital via its investment vehicle QSR Asia Pte Ltd, promoter entity owns 94.34% stake in the company and post IPO its stake will be reduced to 60.1%. The company did pre-IPO placement of Rs150 crore through rights issue and preferential allotment to Amansa Investments.
Earlier on Wednesday, the company raised ₹364.5 crore from a total 55 investors. The anchor allotment was done at ₹60 a share.
Proceeds of the funds will be used to repay existing debt and finance capital expenditure for new company-owned stores. As of First half of fiscal year 2021, the company has a total debt of ₹757 crore.
For FY20, the company reported a sale of ₹841 crore against ₹633 crore a year ago. Net loss for the fiscal was at Rs77 crore versus ₹38 crore from a year ago.
"Considering its strong brand positioning, robust store expansion plans and the bright growth prospects of the QSR industry in India, we expect its financials to improve going ahead", said Motilal Oswal in its recent report.