OPEN APP
Home >Markets >Stock Markets >Burger King issue looks attractive: Angel Broking
The IPO of Burger King India will open on December 2 to December 4. Photo: Pradeep Gaur/Mint
The IPO of Burger King India will open on December 2 to December 4. Photo: Pradeep Gaur/Mint

Burger King issue looks attractive: Angel Broking

Purpose of the issue is to finance the roll-out of new company-owned Burger King Restaurant and to meet the general corporate purposes.

Burger King India, the Quick Service Restaurant, on Friday set a price band of 59-60 per share for its 810 crore initial public offering (IPO). The IPO will open on December 2 to December 4. Purpose of the issue is to finance the roll-out of new company-owned Burger King Restaurant and to meet the general corporate purposes. Analysts at Angel Broking find the issue attractive considering the valuation and expected growth of the burger chain.

Burger King peer Jubilant Foodworks is currently trading at 8.7 EV/sales on FY20 basis. Burger King won't get such a premium valuation as Jubilant Foodworks as it does not have a profitability track record like Jubilant, says the brokerage. "Its outlets are young and we believe majority of the Indian people prefers Jubilant - Pizza over burger sold by Burger King. So Burger King has priced its issue at a significant discount compared to Jubilant Foodworks, so looking at the valuation and the growth the company is expected to do in the future, the issue is looking attractive to us at the first look," says Keshav Lahoti, Associate Equity Analyst, Angel Broking.

Burger King is the fastest growing international QSR chain in India during the first five years of their operations based on the number of restaurants. The issue size of 810 crore comprises fresh issue of 450 crore and offer for sale of 360 crore.

The company has raised pre-IPO funding of 92 crore from public markets investor Amansa Investments at 58.5 per share.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Click here to read the Mint ePaperMint is now on Telegram. Join Mint channel in your Telegram and stay updated with the latest business news.

Close
×
Edit Profile
My Reads Redeem a Gift Card Logout