Burger King IPO is all set to hit Dalal Street on 2nd December 2020. the company aims for an issue size of ₹810 crores through this IPO.
Burger King India Ltd
BK is one of the fastest-growing international QSR (Quick Service Restaurant) chains in India during the first five years of our operations based on the number of restaurants. As the national master franchisee of the BURGER KING® brand in India, it has exclusive rights to develop, establish, operate, and franchise Burger King branded restaurants in India.
Since opening its first restaurant in November 2014, the company has used its well-defined restaurant roll out and development process with the aim of growing quickly, consistently, and efficiently into a pan-India QSR chain and capitalizing on the growing market opportunity in India for QSR restaurants. As of 30 June 2019, it had 202 restaurants, including seven Sub-Franchised Burger King Restaurants, across 16 states and union territories and 47 cities across India. The company builds its restaurant network using a cluster approach and penetration strategy. It launches its brand from flagship locations in high traffic and high visibility locations in key metropolitan areas and cities across India and then develops new restaurants within that cluster. This approach helps it to efficiently manage its vertically managed and scalable supply chain and drive down costs.
Also read: IPO List, current-ongoing-listed IPOs
Objective of the Issue
- To finance the roll-out of new company-owned Burger King Restaurants.
- To meet the general corporate purposes.
Basic details about the company
| Full name | BURGER KING INDIA LIMITED |
| Sector | Hospitality |
| Industy | Hotels, Resorts, and Restaurants |
| Company Website | www.burgerking.in |
Dates to remember
| IPO Open | 02 December 2020 |
| IPO Close | 04 December 2020 |
| Basis of Allotment | 09 December 2020 |
| Refunds date | 10 December 2020 |
| Credit to Demat Account | 11 December 2020 |
| Listing Date | 14 December 2020 |
IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹810 crores |
| Number of shares offered | 13,50,00,000 Shares |
| Face value | ₹10 per equity share |
| Price band | ₹59-₹60 per equity share |
| Retail portion | 10% |
| Lot size | 250 Nos |
| Minimum application | 1 lot – 250 shares |
| Maximum application | 13 lot – 3250 shares |
| Minimum application amount | ₹15,000 |
| maximum application amount | ₹195,000 |
| Listing Exchange | BSE, NSE |
Competitive strength
- Brand value and customer loyalty.
- Strong customer value proposition.
- Vertically scalable supply chain.
- Exclusive franchise rights in India.
- Experienced and professional management team.
Category-wise Break up
Anchor: 6,07,50,000 Shares = 364.50 Crores
QIB: 4,05,00,000 Shares = 243.00 Crores
NII: 2,02,50,000 Shares = 121.50 Crores
RII: 1,35,00,000 Shares = 81.00 Crores (Lot size: 250 = 54,000 Forms)
Total Issue: 13,50,00,000 Shares = 810.00 Crores.
Financials
| Burger King’s financial performance (in INR crore) | ||||
| FY2018 | FY2019 | FY2020 | H1 FY2021 | |
| Revenue | 388.7 | 644.1 | 846.8 | 151.7 |
| Expenses | 471.0 | 682.4 | 919.0 | 268.5 |
| Net income | -81.4 | -38.6 | -77.6 | -119.0 |
| Net margin (%) | -20.9 | -6.0 | -9.2 | -78.4 |
Valuation of Gland Pharma (as of FY2020)
| Earnings Per Share (EPS) | ₹2.87 |
| Price/Earnings (PE ratio) | NA |
| Return on Net Worth (RONW) | -27.8% |
| Net Asset Value (NAV) | ₹7.62 per share (as of 30 Sep 2020) |
Company Promoters
- QSR Asia PTE LTD.
| Pre Issue promoter Share Holding | 99.39% |
| Post Issue promoter Share Holding | 52.9% |
Lead managers
- Edelweiss Financial Services
- Kotak Mahindra Capital
- JM Financial
- CLSA
Registrar of Burger King IPO
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
Lal Bahadur Shastri Marg, Vikhroli (West)
Mumbai – 400 083
Phone: +91 22 4918 6200
Fax: +91 22 4918 6195
Email: burgerking.ipo@linkintime.co.in
Website: http://www.linkintime.co.in
Burger king contact details
Burger King India Limited
Unit Nos.1003 to 1007, 10th Floor, Mittal Commercia
Asan Pada Rd, Chimatpada, Marol, Andheri (E), Mumbai 400 059
Phone: +91 22 7193 3047Email: investor@burgerking.in
Website: www.burgerkingindia.in
Burger King IPO Allotment Status
Burger King IPO allotment status will be available on Link Intime’s website.
Click on this link to get allotment status.
Subscription Status
(Over Subscribed)
| Category | Day 1 | Dy 2 | Day 3 |
| QIB | 0.17x | 2.70x | 86.64x |
| HNI | 0.71x | 3.60x | 354.11x |
| RII | 15.52x | 37.80x | 68.15x |
| EMP | – | – | – |
| Total | 3.13x | 9.37x | 156.65x |
Final thoughts
Burger King IPO is going to hit Dalal street soon. applying for IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post gave you enough details to make a fundamental study of the company. learn well and make a wise decision
Happy Investing
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