Burger King India IPO subscribed over 9 times

Published on Dec 03, 2020 17:33

The initial public offer (IPO) of Burger King India received bids for 69.86 crore shares on Thursday, 3 December 2020, as against 7.44 crore shares on offer, as per the National Stock Exchange of India (NSE) website data at 17:00 IST. The issue was subscribed 9.38 times.

The issue opened for subscription on Wednesday (2 December) and it will close on Friday (4 December). The price band for the IPO is set at Rs 59-60 per share. An investor can bid for a minimum lot of 250 equity shares and in multiples thereof.

The IPO consists of fresh issue of shares amounting to Rs 450 crore and an offer of sale of 6 crore shares by the promoter selling shareholder, QSR Asia.

The promoter selling shareholder will be entitled to the proceeds of the offer for sale net of its proportion of offer related expenses. The company will not receive any proceeds from the offer for sale.

The net proceeds from the fresh issue are proposed to be utilised in funding roll out of new company-owned Burger King restaurants; and general corporate purposes.

Ahead of the IPO, the quick service restaurant chain allotted 6,07,50,000 shares to 55 anchor investors at a price of Rs 60 per share aggregating to Rs 364.50 crore.

The anchor investors include Sundaram Mutual Fund, Steinberg India Emerging Opportunities Fund, ICICI Prudential, Samsung India Securities, Nippon Life, Fidelity Funds, Government of Singapore, Eastspring Investments India, Aditya Birla Sun Life Trustee, Elara India Opportunities Fund, IDFC Mutual Fund, SBI Mutual Fund, Monetary Authority of Singapore, HDFC Mutual Fund and Amansa Holdings.

In May 2020, Burger King by way of right issue had undertaken a pre-IPO placement. It allotted 1.32 crore shares to the promoter selling shareholder, QSR Asia, at Rs 44 per share aggregating to Rs 58 crore. In another pre-IPO placement in November 2020, the company raised Rs 92 crore through preferential allotment of 1.57 crore equity shares to Amansa Investment at a price of Rs 58.50 per share.

The company recorded net loss of Rs 118.95 crore and revenue from operations of Rs 135.21 crore in the six months ended on 30 September 2020.

Burger King set shop in India in November 2014 and has been among the fastest expanding quick service restaurant chains in the country. It is promoted by QSR Asia. The company is the national master franchisee of Burger King in India, with exclusive right and license to develop, establish, operate and franchise Burger King restaurants in India.

As at 25 November 2020, the company has 268 restaurants (259 company-owned Burger King Restaurants and 9 sub-franchised Burger King Restaurants).

The company is obligated to develop and open at least 700 restaurants by 31 December 2026, in compliance with the master franchise and development agreement, provided that at all times company-owned Burger King Restaurants will represent 60% of the total number of company-owned and sub-franchised Burger King Restaurants in India.