Burger King’s IPO fully subscribed on first day on strong retail interest

Mumbai: The initial public offer (IPO) of quick service restaurant chain, Burger King India Ltd was fully subscribed till noon on the first day of bidding on Wednesday.

According to data available with BSE and NSE, the retail portion of the share sale was subscribed 5.1 times, while the portion of shares reserved for institutional investors received no subscription as of yet and that for high net worth investors was subscribed 7%.

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Mumbai-based Burger King India, which currently operates 268 stores in India has fixed the price band at ₹59-60 a share. The IPO will close for subscription on Friday.

Earlier the company raised ₹364.5 crore from a total 55 investors. The anchor allotment was done at ₹60 a share.

Fidelity Funds - India Focus Fund is the biggest investor as it is allocated 8.23% of the anchor investment portion followed by Eastspring Investments India Consumer Equity Open Ltd and Government of Singapore with allocation of 7.13% and 6.79% respectively.

Other investors include Amansa Holdings Private Ltd, Fidelity Investment Trust - Fidelity Emerging Markets Fund, ICICI Prudential Midcap Fund and Aditya Birla Sun Life Trustee Private Limited A/C Aditya Birla Sun Life Small Cap Fund who were allocated 6.72%, 6.35%, 4.76% and 4.42% respectively.

Private Equity firm Everstone Capital via its investment vehicle QSR Asia Pte Ltd, promoter entity owns 94.34% stake in the company. The initial public offering comprises of a fresh issue of Equity Shares aggregating up to Rs400 crore by the company and an offer for sale of up to 60 million equity shares by QSR Asia Pte. Ltd.

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.